Cross-border Care Services and VAT Exemption: BFH Allows Revision on Social Institution Recognition

• The German Federal Tax Court allows revision to clarify tax exemption rules for cross border care services under VAT law when the service location and business location are in different EU member states
• The case involves determining which country’s law applies for recognizing social institutions under Article 132 of the EU VAT Directive when services are provided across borders
• The specific situation concerns care services performed in Germany by entrepreneurs not resident in Germany
• This legal question has practical relevance due to demographic changes and globalization making foreign care workers increasingly important
• The court must decide whether to apply the law of the member state where the service is provided or where the entrepreneur operates their business

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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