Passing on insurance premiums to medical specialists falls under VAT insurance exemption

• The Amsterdam Court of Appeal determined that the recharging of insurance premiums to Medical Specialist Cooperatives (MSCs) is exempt from VAT under the insurance exemption, as it constitutes an insurance transaction.
• X, a former fiscal unity comprising Foundation A and Foundation B, had agreements with the MSCs for liability insurance, with the MSCs reimbursing half of the premiums to the foundations, leading to a dispute over VAT assessments.
• The court’s ruling was based on European Court of Justice case law, confirming that services rendered by a taxpayer utilizing an insurer’s services qualify as insurance transactions, thus exempting them from VAT.

Source:

• uitspraken.rechtspraak.nl
• Taxlive

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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