- Indivisible Service: The court ruled that the hospice provides a single, indivisible service to its guests, which includes the provision of a room, meals, and general care. These elements are so interconnected that separating them would be artificial, emphasizing the hospice’s role in providing a supportive environment for guests in their final stages of life.
- VAT Obligations: The hospice’s services do not qualify for VAT exemptions under the applicable laws, as they cannot be classified as hospital care or recognized social services. Consequently, the hospice is subject to the standard VAT rate of 21% instead of any reduced rate associated with short stays.
- Tax Refunds Granted: The court overturned the tax office’s refusal to grant VAT deductions, allowing the hospice to reclaim VAT for previous periods, including a refund of €29,341 for 2019 and €5,649 for four quarters of 2020, along with an order for the tax office to pay €6,122.25 in legal costs.
Source Taxence
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