VAT on naturopathy services: DGT confirms the 21% general rate

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the taxation of alternative medicine activities. In a binding ruling, it has been analyzed whether services provided by naturopaths can benefit from the Value Added Tax (IVA) exemption applied to healthcare.

What the DGT has ruled

The advisory body has determined that naturopathy activity is not exempt from the tax pursuant to Article 20.One.3.º of Law 37/1992. The resolution establishes that the VAT exemption for medical, surgical, and healthcare assistance is reserved exclusively for medical or healthcare professionals recognized by the current legal system.

Since naturopathy is not legally recognized as a healthcare profession, its services do not meet the necessary requirements to apply the exemption. Consequently, these services must be taxed at the general rate of 21 percent.

What this means for you

This ruling has a direct impact on professionals practicing alternative medicine in Spain, including individuals with professional training abroad who wish to carry out their activities in national territory. If your activity does not fit within the framework of regulated healthcare professions, you must include 21% VAT in your invoices.

For the clients of these professionals, this implies that the final cost of naturopathy services will include the general tax, as the exemption enjoyed by other recognized healthcare professionals cannot be applied.

What should be done

It is essential to verify the legal nature of the professional activity and its fit within the regulations of Law 37/1992. Professionals must ensure that the correct application of the tax rate avoids potential contingencies with the Tax Administration. It is recommended to assess each particular situation to determine if the activity carried out can be classified under another regime or if, indeed, it must be taxed at the general rate.