Nutritionists may only exempt their services from VAT if they have a health purpose

The application of the Value Added Tax (IVA) exemption to services provided by nutrition professionals is not automatic. The Directorate General of Taxes (DGT) has specified the limits that must be met so that these activities are not subject to the general tax rate.

What the DGT has ruled

The administration has determined that, for dietitians-nutritionists' services to enjoy the exemption provided for in current regulations, two requirements must occur simultaneously:

• Professional training: The service provider must have the degree and training required by the legal system for the exercise of the health profession.
• Health purpose: The service provided must be specifically oriented towards the diagnosis, prevention, or treatment of diseases.

If the nutrition service does not have a therapeutic or public health purpose linked to the prevention or treatment of pathologies, the activity is subject to the tax rate of 21 percent.

What this means for you

For health professionals and companies that bill these services, this criterion establishes a clear boundary between wellness activity and health activity. If your activity is limited to general nutritional guidance or advice without a component of diagnosis or treatment of diseases, the VAT exemption is not applicable.

This implies that the nature of the service will dictate the tax burden. Companies that group services from health professionals must ensure that the purpose of each provision is strictly therapeutic to be able to apply the exemption correctly and avoid contingencies with the Administration.

What should be done

It is necessary to evaluate the nature of the services provided and the documentation that supports the activity. The ability to justify that the service has a goal of diagnosis, prevention, or treatment is fundamental to support the VAT exemption. It is recommended to analyze whether the activity fits within the provisions of Law 44/2003 on the regulation of health professions to ensure compliance with tax regulations.