21% VAT for transfer sheets with handles for reduced mobility

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the application of Value Added Tax (IVA) on products intended for people with physical impairments. The inquiry focused on determining whether transfer sheets with handles, designed to facilitate the movement of people with reduced mobility, could benefit from the reduced tax rate.

What the DGT has ruled

The administration has ruled that the supply of this type of sheet must be taxed at the general rate of 21%. The criterion is based on the fact that, to apply the 10% reduced rate, assistive products must be designed to alleviate or treat impairments and comply with the specific categories established in current regulations.

In this case, the DGT concludes that the sheet with handles is not included in the categories of products mentioned in the eighth section of the Annex to the IVA Law. Since it does not fit the technical definition of medical equipment or an assistive product with the objective characteristics required by law, it is not possible to apply the 10% rate.

What it means for you

This ruling has a direct impact on two profiles:

• Companies: Establishments and manufacturers marketing this specific product must mandatory apply the general rate of 21% on their invoices.
• Consumers: The end user acquiring this mobility aid must bear a higher tax cost than they might expect if they considered the product to be medical equipment subject to the reduced rate.

What should be done

Companies operating in the orthopedic or assistive products sector should verify the classification of their product catalog in accordance with Law 37/1992. It is necessary to ensure that the application of the tax rate is correct to avoid possible contingencies with the Tax Administration. Given that the interpretation of what constitutes an assistive product for the exclusive use of people with impairments is strict, it is recommended to assess the technical nature of each item marketed.