New 5% VAT Rate for Social Enterprises Providing Socio-Health Services to Disadvantaged Groups

• A new 5% VAT rate is introduced for certain social-health services provided by social enterprises established under Book V, Title V of the Civil Code.
• The reduced rate applies to services for elderly and disadvantaged groups (e.g., disabled adults, drug addicts, AIDS patients, migrants, homeless, asylum seekers, prisoners, victims of trafficking).
• The benefit extends to social cooperatives, their consortia, and, following the new law, also to social enterprises, including those in corporate form.
• Social enterprises are now included in some VAT exemptions for health, educational, and social-assistance services, but those in corporate form are excluded from certain exemptions.
• The 5% rate aims to provide favorable treatment to social enterprises not eligible for VAT exemption, addressing previous asymmetries with social cooperatives.

Source: eutekne.info

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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