Bulgarian company MOMTRADE RUSE (hereinafter: Momtrade) is registered as a provider of social services with the Social Assistance Office and holds registration certificates in Bulgaria. Momtrade provides personal care and home help to elderly people living in Germany and Austria. The various obligations of the service provider are described in detail in a questionnaire attached to the agreements, which has been prepared by an agency registered in Germany or Austria, which deals with finding customers and referring them to Momtrade. The Bulgarian tax authorities consider that because the services were actually provided in Germany and Austria, Momtrade in order to claim the VAT exemption, he had to provide proof that the services provided were of a social nature in accordance with German and Austrian law. After the Bulgarian tax authorities established that Momtrade had not provided such proof, an additional tax assessment was imposed.
Source BTW jurisprudentie
See also
- Summary of C-620/21 (Momtrade Ruse) – VAT exemption for social services to natural persons in other member states
- C-620/21 (Momtrade Ruse) – Judgment – VAT exemption for social services to natural persons in other member states
- Roadtrip through ECJ Cases – Exemption related to welfare and social security work (Art. 132(1)(g))
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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