- The case concerns VAT exemption for care and nursing services financed through personal budgets under German tax law
- Personal budget is regulated by Section 29 SGB IX as a form of integration assistance to give people with social benefit claims more personal responsibility through their own financial means
- A service is not automatically included in the social threshold calculation just because payment comes from a personal budget
- However a service is included in the social threshold calculation when a budget recipient has concluded an individual target agreement with a specified cost bearer as budget provider and there is an overall plan from the budget provider
- The BFH previously ruled that indirect financing of social care services through personal budgets can be sufficient for tax exemption
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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