Common VAT pitfalls for doctors in practice

• Doctors often believe that all medical services are exempt from sales tax, but this is not always the case.
• The exemption from sales tax depends on whether the service qualifies as a “healing treatment”.
• Typical exempt healing treatments include examinations, prevention, therapy for physical and mental illnesses, and certain dental procedures.
• Aesthetic-plastic treatments without medical indication are not exempt from sales tax, unless they are covered by health insurance.
• The sale of medications for consumption outside of the doctor’s office or from a personal pharmacy is not exempt from sales tax, but administering medications in the office is exempt.
• Only certain professions, such as doctors, dentists, psychotherapists, and physiotherapists, can provide exempt healing treatments.
• Treatment services from alternative practitioners, homeopaths, masseurs, and chiropractors are not exempt from sales tax.
• Occupational physicians may provide a mix of exempt and non-exempt services, with a 90% taxable and 10% exempt split.
• Timesharing models for renting out medical practices can still qualify for the sales tax exemption if rented at cost without profit, but if a profit is made or rented to non-exempt practitioners, it becomes taxable if the annual income exceeds 35,000 euros.

Source: aerzte-exklusiv.at

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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