VAT in the health care sector as of 1 April 2012
The General Financial Directorate (“GFD”) published information concerning the application of VAT in the health care sector starting 1 April 2012. The GFD specifies tax-exempt supplies and supplies to which reduced or basic tax rates apply in connection with the adoption of the Health Care Services Act and related acts[1].
Starting 1 April 2012, supplies constituting a health care service pursuant to the Health Care Services Act which are delivered by a duly licensed health care services provider and aimed at treating or protecting human health will be considered as tax exempt. To determine whether a supply is tax exempt, the purpose and target of the services shall be decisive. Examples of tax exempt and non-tax exempt supplies have been provided by the GFD. The GFD also emphasized that the method of payment for the services shall no longer be decisive for determining whether a specific supply is tax exempt or not.
[1] Act No. 372/2011, Coll., on Health Care Services, Act No. 373/2011, Coll., on Specific Health Care Services and Act No. 374/2011, Coll., on Health Care Rescue Service
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