- The court held that the hospice provides one composite supply: temporary room rental is the main service, while meals, volunteer support, and care coordination are ancillary services that follow the VAT treatment of the main service.
- Because the hospice is a low-care, home-like facility and does not itself provide medical or nursing treatment, the medical VAT exemption did not apply.
- The main service was treated as short-term accommodation in a pension-type business, which falls within the exception to the VAT exemption for rental of immovable property; therefore the service was taxable for VAT.
- On appeal, the key issue is whether the hospice can deduct input VAT on construction costs, and whether its supply is taxable or exempt under Dutch VAT exemptions for rental, medical care, or related services.
- The tax inspector seeks reversal of the lower court’s ruling; the hospice asks for confirmation and a costs award.
Source: uitspraken.rechtspraak.nl
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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