VAT Exemption for Care Services Financed Through Personal Budgets Under German Law

• 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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