With the objective that all people who need dependency care services pay the same reduced rate of 4% for the services they require to guarantee a minimum quality of life, the CEAPs (Círculo Empresarial de Apoyo a las Personas) has launched a Manifesto for the equalization of this tax in all Dependency Care Services.
As indicated by the CEAPs, with this document a unanimous agreement is required from the political formations for the approval of the amendment presented by various parliamentary groups to amend the Value Added Tax Law for a reduced rate of 4% for services that require telecare, home help, day and night centers and/or residential care, all of which are essential services.
The VAT paid in residences, day centers, home care and other assistance resources is 10% if they are contracted personally, while for the same concerted or public service, it is taxed at 4%.
With this manifesto, the and the social and economic agents who sign it jointly transfer their unanimous support to the amendment that ends the “Historical injustice suffered by the elderly, dependent people and their families”in relation to the payment of VAT for services and professional care benefits that they need.
And it is that, at present, the VAT that they pay in residences, day centers, home care and other assistance resources It is 10% if they are hired personallywhile for an identical concerted or public service, 4% is taxed. “A A particularly worrying situation is that of those people who live in limbowho even having the right to a public place have to pay for the place or the service out of their own pocket, in addition, with the 6 percent increase in the tax rate »is noted in the Manifesto.
For this reason, the signatories believe that it is time for political parties to defend a dependency care model “that respond to people’s needs and put them at the center of the system and we see it as absolutely necessary to improve the budget allocation for the care of the most dependent”. And for this they justify the VAT equalization for three main reasons:
1. For social justice
because there is no explanation the same service, in the same place and to the same person, has a different taxation. The average price of a place for the elderly is 1,777.62 euros, plus VAT of 10 percent (between 2,100 – 1,400 euros due to the great inequalities in Spain) and the average pension is 1,170.96 euros as of December 2020. These data reflect the need for this measure.
Because there are even people who have started the application process before the SAAD for a care or care service or an economic benefit linked to the service, who are on the waiting list. Many cannot wait for a decision from the administration that assigns
a public or concerted place or a PEV (Provision Linked to the Service). They are forced to access a private resource during this waiting time.
These people are doubly harmed: pay the full price (in public or subsidized places there is a co-payment) and, as has been pointed out, they pay 6 percent more VAT than what a public or subsidized place would pay.
2. Because it is a universal right
He access to a professional service is a universal right recognized by Law 39/2006 (LAPAD) and citizens cannot be penalized by increasing VAT when they are forced to contract a private service due to lack of resources or the inefficiency of the public system.
The lack of public squares and the long period of time that elapses from when assistance is requested from the dependency until a service or benefit is granted (an average of 438 days) forces many people with care needs to opt for a non-concerted place having to assume a 6% more VAT than the rest.
Dependency care cannot be considered a luxury, regardless of who provides it. It is a basic need service and must be taxed at 4%, like other basic services.
3. Because it benefits the elderly dependents and the country’s economy
Considering the loss of purchasing power derived from the high costs of basic elements such as electricity and food products, equalizing VAT at 4% would be an action that would alleviate the situation of many older people who today pay for the effect of VAT more than 1,200 euros per year.
In addition, people in need of care and their families will have less qualms about going to professional serviceswhich will lead to an improvement in the occupation of the centers, there will be new hiring of personnel, with the consequent increase in contributions, and the number of unemployed will be reduced directly, thus achieving savings in unemployment benefits.
A decrease in the rate to 4% will not only respect the principle of equality included in article 14 of the Spanish Constitution, but rather will improve the collection of the State in 170 million euros and will create a large number of new jobs and assistance resources. For every 2 users, there is approximately one hiring, incorporating profiles with a high risk of job exclusion, such as middle-aged women with basic professional training. It is a stable job and not relocatable.