Osteopathy professionals may apply VAT exemption if treating illnesses

The application of Value Added Tax (VAT) exemption in healthcare services is an area of particular relevance for health professionals. Recently, the Directorate General of Taxes (DGT) has specified the requirements necessary for osteopathy services to benefit from this exemption regime.

What the DGT has ruled

For a healthcare service to be exempt from VAT, the administration requires compliance with two concurrent requirements: one objective and one subjective. The objective requirement demands that the service's purpose be the diagnosis, prevention, or treatment of illnesses. The subjective requirement establishes that the service must be provided by medical or healthcare professionals.

The ruling clarifies that, following the jurisprudence of the Court of Justice of the European Union (CJEU), the exemption is not limited exclusively to professions regulated by Spanish national law. In the specific case of osteopathy, the professional may apply the exemption provided they possess the necessary professional qualifications and the service is provided for therapeutic, preventive, or diagnostic purposes.

As a reference for the necessary qualification, it is mentioned that the professional must hold a degree and qualification equivalent to European standards, such as the UNE-EN 16686:2015 standard, to ensure that the activity falls within the scope of healthcare.

What this means for you

If you are an osteopathy professional, the possibility of not charging VAT on your invoices depends directly on the nature of your activity and your professional accreditation. It is not enough to perform a manual technique; it is imperative that the service is specifically oriented toward health (diagnosis, prevention, or treatment of pathologies) and that you can demonstrate that you possess the technical training required by European standards.

What should be done

It is necessary to evaluate the nature of each service provided to ensure it meets the therapeutic purpose required by the regulations. Likewise, documentation must be kept to prove professional qualification in accordance with industry standards to avoid contingencies during an inspection by the Tax Agency (AEAT). Each situation must be analyzed to determine if the activity fits within the exemption scenarios of Law 37/1992.