Tax Treatment of Cost Reimbursement by Medical Group Associations

• The Association is made up of general practitioners who have agreed to carry out their activity under the associative form of group medicine.
• The Association assumes the costs of managing the clinic and charges each associated doctor their share of the costs.
• The Association issues an invoice with 22% VAT for the charges.
• The associated doctors maintain a direct professional relationship with the local health authority, which pays them directly without going through the association.
• The Association’s only source of income is the recharging of management costs to the associated doctors.
• The Association believes it is a private entity carrying out commercial activity exclusively or predominantly.
• The Association believes it is not subject to IRAP because it lacks the tax requirement.
• The Association believes that the services provided to its members can benefit from the VAT exemption regime.

Source: agenziaentrate.gov.it

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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