According to this ruling, Spain has been in breach of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax at a reduced rate on medical devices mentioned above, so that the Court recalls that Spain "must comply with the provisions of the judgment as soon as possible."
Specifically, the products will experienceincrease in VAT to 21%will:
- Medicinal substances that can be used commonly and aptly in obtaining medications. The reduced dutyto apply only to the final products, which are the final consumer use.
- Medical devices, material, equipment or instruments that, objectively considered, but can be used to prevent, diagnose, treat, alleviate or cure diseases or ailments of man or animals, but are not normally intended to alleviate or treat disability, for the exclusive personal use of the disabled (eg, thermometers, blood pressure, needles, gloves, gauze, hats, masks, medical gowns and bandages).
These are items mainly used by health professionals to provide services that are usually exempt from VAT, so will these professionals and end users who must endure the climb.
- Equipment and accessories essential susceptible or mainly devoted to meeting the physical deficiencies of the animals;
- Equipment and accessories essential or principally used to supply the deficiencies of the man but not intended for the exclusive personal use of the disabled.
This judgment is not susceptible to appeal, so the government should eliminate the reduced VAT list the products listed above.
However, the implementation of these measures will not be immediate, but that the Commission grant to Spainsufficient time to make necessary legislative procedures to amend the VAT Act.