Proposal to cut VAT on all dependency care services to 4%

Automatic summary, not yet reviewed

1. The bill's statement of reasons explains that many dependency care services are VAT exempt when provided by a public entity or a social establishment, but taxed at 4% or 10% when provided by other entities. This makes many families pay more for basic services.
2. The sponsors propose a single 4% VAT rate for all dependency care services, regardless of how they are funded, because many people on waiting lists hire private services.
3. The bill would amend the VAT Law so that the 4% rate applies to telecare, home help, day and night center, and residential care services, with no conditions on their funding. It would not affect services that are already VAT exempt.
4. The law would enter into force on January 1 of the year after its publication in the Boletín Oficial del Estado (official gazette).

Who it affects

• Dependent people and their families: Would pay 4% VAT instead of 10% on dependency care services hired on the private market.
• Companies and entities providing dependency care services: Would have to apply the 4% rate to all non-exempt dependency care services, with no funding conditions.
• Public administrations and the tax agency: Would have to adapt tax administration to the new rule.

Words worth knowing

IVA

Impuesto sobre el Valor Añadido, Spain's Value Added Tax (VAT), paid when buying goods or services.

Tipo superreducido

The lowest VAT rate, in this case 4%.

Servicios exentos

Services that are not subject to VAT.

Plaza concertada

A place in a private care home or center paid for through an agreement with a public administration.

Proposición de ley

A bill, a legislative proposal still going through Parliament, not yet approved.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries