Medical companies with operations at a medical center provided medical care to patients and not services to the medical center

In a preliminary ruling case, the Supreme Administrative Court has considered that a medical company with operations at a medical center provided patients with medical care that is exempt from tax. The medical company had an agreement with a medical center to conduct internal medical activities on the medical center’s premises. Läkarhuset provided i.a. staff with the right skills, premises, medical equipment, systems for patient and medical records and reception rooms for the medical company in exchange for receiving a share of the medical company’s revenue, which consisted of compensation from the region and patient fees.

The Supreme Administrative Court considered that in the present case it appeared according to the agreement between the medical company and the medical center that the medical company did not provide any services for remuneration to the medical center. The medical company’s commitments under the agreement were performed without compensation and were considered to aim to facilitate the medical center’s provision to the medical company. The court found that the only services provided by the medical company in the context of the activities covered by the application for prior notice were thus those provided to the medical company’s patients. Thus, the only thing that the Supreme Administrative Court would rule on was whether the company’s provision to patients was covered by the exemption from tax liability for healthcare.

According to the court, it was clear that the medical society’s services provided to the patients were of such a nature that they were covered by the tax exemption for healthcare. It was irrelevant whether the services were performed by the medical company’s own employees or by staff hired by the medical company from outside, as well as whether the medical company owned the equipment and premises used in the business or if these resources were provided to the medical company by someone else. The fact that the medical center provided certain services to the company therefore did not affect the assessment of whether the services provided by the company to the patients constituted medical care ( HFD 2021-05-31, case no. 7109-20 ).

The Swedish Tax Agency is currently analyzing the Supreme Administrative Court’s ruling.




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