Belgium: Guidance clarifying VAT exemption for medical and hospital care
Commentary with regard to the amended provisions of the VAT exemption for medical and hospital care
Commentary on amended provisions of VAT exemption for medical and hospital care
The Belgian tax authorities on 20 December 2021 published guidance (Circular 2021/C/114) concerning the value added tax (VAT) exemption for medical care by qualifying persons and for hospital care.
The circular includes commentary with regard to the amended provisions of the VAT exemption for medical and hospital care.
Background
A VAT exemption for medical and hospital care (as amended by July 2021 legislation, with an effective date of 1 January 2022) is intended to align the scope of the exemption with EU legislation and Belgian case law, and to clarify that certain non-therapeutic services are excluded from the scope of the measures. Read TaxNewsFlash
There are substantial implications regarding the VAT position of many (para)medical and hospital care providers, and this has triggered questions. In response, the Belgian tax authorities earlier in December 2021 announced tolerances and certain transitional measures with regard to the applicable VAT regime, VAT identification, first periodic VAT returns, and the revision of deducted VAT.
Read a December 2021 report prepared by the KPMG member firm in Belgium
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