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COVID-19: Extension of zero rating of medical supplies till April 30, 2021 and 4% on masks till Dec 31, 2021

Tax rate applicable to masks

  1. 0% tax rate on the delivery, import and intra-community acquisition of medical suppliesArticle 6 of RD-Law 34/2020, with effect from November 1, 2020:
      • Until April 30, 2021, the application of the zero percent tax rate to internal deliveries, imports and intra-community acquisitions of medical supplies to combat COVID-19, whose recipients are public entities, non-profit organizations and hospitals.
      • Updates the list of assets to which this measure applies in its  annex .

    Entrepreneurs who have charged or paid VAT for operations to which Royal Decree-Law 34/2020 applies the zero rate and which have been carried out prior to its entry into force, will rectify the tax in accordance with article 89 LIVA.

    It is remembered that these operations will be documented in the invoice as exempt operations.

  2. 4% tax rate on the delivery, import and intra-community acquisition of masksArticle 7 of RD-Law 34/2020, with effect from November 19, 2020 to December 31, 2021, temporarily reduces the rate applicable to deliveries, imports and intra-community acquisitions of surgical masks from 21 to 4% disposables whose recipients are different from the above.

Source Agencia Tributaria

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