Hospice Services Taxed at 21% VAT; Renovation VAT Deductible, Not Medically Exempt

• The hospice foundation provides rooms, meals, and general care, but not direct medical care, to guests.
• The tax inspector and lower court initially ruled the foundation’s services were medically exempt from VAT, denying VAT deduction on renovation costs.
• The Arnhem-Leeuwarden Court ruled the foundation’s services are not medically exempt, as it does not provide medical care itself, nor is it a social or cultural institution.
• The court also found the hospice service does not qualify as short-stay accommodation, so the standard 21% VAT rate applies.
• As a result, the foundation can fully deduct VAT on renovation costs; since January 1, 2026, the VAT rate for short-stay accommodations has increased from 9% to 21%.

Source: fiscount.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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