The reduction of the VAT of the masks by the RDL 34/2020 is approved, which reduces it from 21% to 4%.
This past Thursday, November 19th, the urgent measures to support business solvency and the energy sector, as well as tax matters, came into effect after their publication in the Official State Gazette (BOE).
Reduction of the VAT of the masks
Among other measures, it includes the temporary reduction of VAT on deliveries, imports and intra-community acquisitions of disposable surgical masks from 21% to 4% VAT. This reduction, however, will not affect FFP2 or cloth masks.
The application of this super-reduced tax will remain in force until the 31st of December 2021.
This measure is in addition to the decision taken the previous week at the Inter-Ministerial Drug Price Commission (CIPM), where a 25% reduction was agreed on in the maximum retail price of disposable surgical masks. Now, after the reduction of VAT to 4%, the final reduction of the price of the masks will be 35%.
Extension of purchase of medical equipment at 0% VAT
In addition, this Royal Decree has extended until the 30th of April 2021, the application of the zero VAT rate to the import and acquisition of essential healthcare material to combat COVID-19 that is destined for public or private healthcare centers, clinics or hospitals, as well as the social entities referred to in paragraph three of Article 20 of Law 37/1992, of December 28, on Value Added Tax.
These operations will be documented in the invoice as exempt operations.
The goods that benefit from this zero VAT rate are those referred to in the annex to the Royal Decree Law. These include masks of all types, gloves, goggles, caps, waterproof gowns, thermometers, respirators, and various personal protection items.
The effects of this approved measure will be retroactive to the 1st of November, when the previous extension ended. Therefore, if between October 31 and November 19 has been made any sale of these materials to any of these health centers applying the usual rate of VAT, should be rectified by applying the 0% rate.