Understanding VAT Exemption for Medical Services: Implications and Conditions for Healthcare Providers

• Therapeutic medical services are exempt from VAT under article 261 of the CGI
• Patients do not pay VAT on consultations, reducing costs for them
• Doctors cannot deduct VAT on purchases, leading to increased costs for them
• Doctors bear VAT on their costs, impacting the price of consultations
• Doctors are subject to payroll tax for employees, increasing hiring costs
• Conditions for applying the exemption include services provided by specific medical professionals
• Exemption applies to services provided by doctors and sales of goods directly related to care
• VAT exemption does not apply to income from activities not related to patient care
• Rental of furnished premises by a doctor to colleagues is subject to VAT

Source: cyplom.com

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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