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Decision A-1004/2023 of 7 May 2024

24 May 2024

Decision A-1004/2023 of 7 May 2024

In its decision of 7 May 2024, the Federal Administrative Court dismissed the appeal by the VAT group A. AG against an objection decision by the Federal Tax Administration (FTA) concerning VAT claims for the years 2016-2017.

The tax treatment of managed care services and medical massages provided by the taxpayer in satellite locations was at issue. The taxpayer applied for a declaration that the income from managed care services and medical massages at the location (anonymised in the decision) and its four satellite locations is exempt from tax, which was asserted by the FTA.

The court concluded that the only disputed income from managed care services provided under the framework agreements and from medical massages provided at the satellite locations was not exempt from VAT according to Article 21, paragraph 2, number 3 of the Value Added Tax Act. The appeal was dismissed insofar as it was considered.

The partial revision of the Value Added Tax Act will extend and clarify the exemptions from VAT in accordance with the new Article 22, paragraph 2, number 3 in the healthcare sector. “Coordinated care services in connection with medical treatments” will therefore be exempt from VAT in the future.

For more information, see here.

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