Online psychology services may be exempt from VAT if they have a healthcare purpose

The application of the VAT exemption to healthcare services has raised doubts in the field of telemedicine and remote psychological care. The Directorate General of Taxes (DGT) has recently clarified the scope of this exemption when services are provided through telematics means.

What the DGT has ruled

The administration has determined that psychology services provided online may qualify for the exemption provided for in Article 20.One.3º of Law 37/1992. For this exemption to be applicable, the service must strictly meet two fundamental requirements:

• Objective requirement: The services must be intended for the diagnosis, prevention, or treatment of diseases.
• Subjective requirement: They must be provided by professionals who possess the training required by current regulations.

Furthermore, the DGT clarifies that the use of telematics means does not distort the nature of healthcare. The key point is that there must be direct human intervention to prevent the service from being classified as a service provided by electronic means, which do not enjoy this exemption.

What this means for you

If you are a psychology professional or represent an entity that invoices these services, the possibility of applying the VAT exemption depends on the clinical nature of the activity. Providing a support or advisory service is not enough; it is imperative that the activity has a public health or clinical treatment purpose.

For individuals receiving these services, this implies that the invoice issued by the professional might not include the tax, provided that the healthcare purpose and the professional's qualifications are proven.

What should be done

It is necessary to evaluate the nature of each service provided to ensure it meets the criteria for diagnosis, prevention, or treatment. It must be verified that the online care modality maintains the essence of human intervention to prevent the Administration from classifying it as an electronic service excluded from the exemption. Given the specificity of the regulations, each case must be analyzed to determine if the activity fits within the provisions of the VAT Law.