The supply of services is, as a main rule, subject to value added tax. Medical services, however, are exempted from taxation.
A licensed doctor operated a medical practice at his company within the specialities internal medicine, geriatrics and general medicine. The practice is situated, alongside other medical practices, on premises which belong to another company (the medical centre). The medical centre provides the company with certain personnel, premises and equipment. As compensation for the medical centre’s services, the company is to pay an amount to the medical centre corresponding to a certain percentage of the company’s revenues.
The Supreme Administrative Court found that it is clear that the services provided by the company to patients are of the type covered by the tax exemption for medical care. The fact that the medical centre provides certain services to the company thus does not affect the assessment of whether the services provided by the company to the patients constitute medical care.
Read the judgment here: