VAT on mobile ramps: 10% or 21%? The DGT's criteria
Determining the applicable tax rate for Value Added Tax (IVA) on assistive products for people with disabilities is a critical aspect for correct invoicing and the final cost for the consumer. Recently, the General Directorate of Taxes (DGT) has clarified the application of the reduced rate in the specific case of mobile ramps.
What the DGT has resolved
The query concerned the tax rate applicable to the supply of mobile ramps. The DGT has established that the reduced rate of 10% is applicable to those products which, due to their objective characteristics, are designed to alleviate or treat deficiencies for the personal and exclusive use of persons with physical, mental, intellectual, or sensory impairments.
Specifically, the resolution indicates that mobile ramps will be taxed at 10% as long as they can be assimilated into the concept of portable ramps as set out in section eight of the Annex to Law 37/1992. If the product does not meet these characteristics of portability and design for personal and exclusive use, the general rate of 21% must be applied.
What this means for you
This criterion has a direct impact on two profiles:
- Commercializing companies: Suppliers of this type of equipment must perform a technical analysis of their products. The intention of use is not enough; the nature and objective characteristics of the mobile ramp must allow its assimilation into portable ramps to legally apply the reduced rate.
- End consumers: The acquisition cost of these assistive products will depend on their technical classification. The correct application of the tax rate represents a significant economic difference for the end user.
What should be done
When marketing these types of products, it is necessary to verify the technical nature of each model. It is fundamental to ensure that the description and characteristics of the product fit the assumption of portable ramps to avoid tax contingencies. It is recommended to assess each case individually according to current regulations.
Frequently asked questions
- What is the main requirement to apply the 10% VAT rate?
- The product must be designed for the personal and exclusive use of people with impairments and must be able to be assimilated into a portable ramp.
- What happens if the mobile ramp is not considered portable?
- In that case, the transaction will be subject to the general VAT rate of 21%.