The Advocate General Ettema believes that the Court of Appeal made an incorrect assessment regarding the application of VAT exemptions at the level of a fiscal unity (fe) because the fe is only a fiction for VAT purposes and it is actually the members of the fe who engage in economic transactions. The case concerns the application of the medical VAT exemption for services provided by Foundation A and B BV, which are part of Fiscal Unity X and provide healthcare services. The District Court ruled that the exemption applies for 24-hour services provided to external healthcare institutions that provide intramural care, but not for those providing extramural care. The Court of Appeal ruled that the exemption applies for both types of care, but at the level of the fe rather than the member providing the service. The Secretary of State is appealing. The AG advises the Supreme Court to settle the case itself and notes that there is no entitlement to a VAT exemption for 24-hour services.
Source Taxlive
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