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Home Care Services: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 28 rulings · 2014–2023

Current position

The 4% rate applies to home care services defined in Law 39/2006, provided they are provided in contracted places or through prices derived from an administrative contract where the Administration sets the rates. If the service is provided under a private, non-contracted regime with freely agreed prices, the applicable rate is 10%. Social entities providing exempt services are not entitled to the deduction of the VAT (IVA) amounts incurred.

The DGT's position has remained constant since 2014, distinguishing between the 4% rate for contracted services or those with administrative prices and the 10% rate for the private regime. The doctrine has reiterated the need to comply with the requirements of Law 39/2006 to access the reduced rate. No changes have been observed in the interpretation of the tax base or the applicable rate throughout the sequence.

Turning points

  1. V1145-14

    Clarifies that the benefits provided by social entities are subject to but exempt from IVA according to article 20.One.8º of Law 37/1992.

  2. V0769-23

    Specifies that entities performing exempt operations, such as home care by social entities, are not entitled to deduct the amounts incurred.

Analysis based on 25 of 28 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V2413-16 2 Jun 2016

Subcontracted catering services subject to 10% VAT instead of 4%

SG de Impuestos sobre el Consumo
tipo impositivoservicio de restauraciónplazas concertadasatención residencialcentro de día LIVA — Ley 37/1992 del IVA art. 91.dos.2.3ºLIVA — Ley 37/1992 del IVA art. 91.uno.2.7º
Affects CompanyExpat · Non-residentIndividual
V1964-14 18 Jul 2014

Laundry services provided to care centres subject to 21% VAT

SG de Impuestos sobre el Consumo
tipo impositivoatención residencialayuda a domiciliocontrato administrativoasistencia social LIVA — Ley 37/1992 del IVA art. 91.uno.2.7ºLIVA — Ley 37/1992 del IVA art. 91.dos.2.3º
Affects CompanyExpat · Non-residentIndividual

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