BMF adjusts VAT guidelines for VAT exemption in respect of laboratory services

• The German Federal Ministry of Finance (BMF) has issued a new directive regarding the value-added tax (VAT) exemption for laboratory services.
• The directive addresses the current legal interpretation of VAT exemption under § 4 No. 14 letters a and b of the VAT Act (UStG) for laboratory services.
• The BMF adjusts the VAT administrative guidelines to align with the updated legal interpretation.
• § 4 No. 14 letter a of the UStG exempts medical treatments in the field of human medicine provided by specific professional practitioners.
• § 4 No. 14 letter b of the UStG exempts hospital treatments, medical treatments, diagnostics, preventive care, rehabilitation, maternity care, hospice services, and related services provided by public institutions.
• The VAT exemptions are based on Article 132(1) letters b and c of the EU VAT Directive (MwStSystRL).
• In 2017, the Federal Fiscal Court (BFH) ruled that medical analyses conducted by privately organized laboratories outside the premises of the referring physician can be VAT exempt under § 4 No. 14 letter b of the UStG.
• However, in 2019, the BFH ruled that medical analyses conducted by a specialist in clinical chemistry and laboratory diagnostics can be VAT exempt under § 4 No. 14 letter a of the UStG.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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