Controversy over the scope of the term “medical care” in the context of its exemption from value added tax

Abstract

Generally, health care services that are intended to prevent, save, restore, and improve health are exempt from VAT. However, not every activity meets the requirements set by EU or national law. The rules regarding VAT exemptions for medical services are not precise enough to avoid controversy. Case law and tax interpretations help determine whether a medical service is exempt. However, it is not consistent. It is problematic to assess whether comprehensive services, services related to plastic surgery, and recently also medical advice by phone or internet are eligible for VAT exemption. These problems were signaled in the article.