Medical products that are food supplements will be taxed at 10% VAT

The determination of the applicable tax rate for Value Added Tax (IVA) on medical products has raised doubts regarding the possibility of applying the reduced rate. The Dirección General de Tributos (DGT) has clarified the necessary criteria so that these products are not taxed at the general rate of 21%.

What the DGT has resolved

The ruling analyzes whether certain medical products can benefit from the 10% tax rate. The binding body establishes that the key lies not only in the medical nature of the product, but in its technical classification. The products in question will be taxed at 10% VAT as long as they hold the status of food supplements, in accordance with the provisions of Royal Decree 1487/2009.

In the event that the products do not meet the requirements to be considered food supplements, the administration requires the application of the general rate of 21%. The DGT specifies that these products are not included in the eighth section of the Annex to Law 37/1992, which prevents their automatic treatment under the reduced rate if they do not meet the aforementioned condition.

What this means for you

For companies marketing medical products, this resolution implies a direct responsibility in the classification of their catalog. The distinction between 10% and 21% VAT depends strictly on food regulations and not just on the purpose of the product.

• Distributors: Must verify that each product complies with Royal Decree 1487/2009 to avoid billing errors and potential sanctions for applying a rate lower than the one due.
• Consumers: The final cost of the product will vary depending on whether the technical qualification allows for the use of the reduced rate.

What should be done

It is necessary to perform a technical analysis of the composition and labeling of the products being marketed. Correct qualification as a food supplement is the only way to apply the 10% rate. It is recommended to cross-check the nature of each item with current regulations to ensure that the VAT settlement is correct according to the technical classification of the product.