Application of the 4 percent Value Added Tax rate to deliveries, imports and intra-Community acquisitions of masks.
VAT on disposable surgical masks is reduced from 21% to 4%.
This decrease affects only this type of masks, the ones that are normally blue disposable, those that before the pandemic we used to see only in hospitals. But it leaves out other types, such as FFP2 (those that offer greater protection, normally white) or hygienic masks (those made of cloth).
The Royal Decree-Law 34/2020, of November 17, establishes in its Article 7 the following:
In its Article 7 it specifies the Application of the 4 percent rate of Value Added Tax to deliveries, imports and intra-community acquisitions of masks.
With effect from the entry into force of this Royal Decree-Law and in force until December 31, 2021, the 4 percent Value Added Tax rate shall be applied to the deliveries, imports and intra-Community acquisitions of disposable surgical masks referred to in the Agreement of the Interministerial Commission on Drug Prices, of November 12, 2020, whereby the maximum amounts of sale to the public are revised, in application of the provisions of Article 94. 3 of the rewritten text of the Law on Guarantees and Rational Use of Medicines and Health Products, approved by Royal Legislative Decree 1/2015, of July 24, published by the Resolution of November 13, 2020, of the General Directorate of Common Portfolio of Services of the National Health System and Pharmacy.".
In accordance with the Department of Customs and Special Taxes of the State Agency of Tax Administration the masks included in the objective scope of the referred article 7 of the Royal Decree-Law mentioned for the purposes of the application of the reduced rate of 4 percent are those corresponding to the following TARIC codes and descriptions:
Product description CN codes
Surgical protective masks, disposable, of paper, not put up for retail sale 4818.90.10.00
Surgical masks, surgical, disposable, of paper, put up for retail sale 4818.90.90.00
Surgical masks (according to EN14683), disposable, of nonwovens and other masks filtering at least 95% of particles of 3.0 microns (whether or not put up for retail sale) 6307.90.98.15
Other disposable surgical masks of nonwoven fabrics (whether or not put up for retail sale) 6307.90.98.17
In this sense, the following masks, among others, are excluded from the application of the aforementioned 4 percent rate, even if they are classified, where applicable, under one of the TARIC codes indicated in the above table:
-Non-surgical paper protective masks.
-Masks made of knitted or other woven textile materials.
-Self-filtering masks FFP2 and FFP3 according to EN149 standard.
-Self-filtering masks FFP1 according to standard EN149, and other masks that filter at least 80% of particles of 0.3 microns.