The ECJ received questions from the Belgian Court in Case C-400/18 (Infohos), regarding the VAT exemption for hospitals.
Simplified facts:
- Infohos is an association for hospital informatics, set up by various public centers for social welfare. Infohos agreed with the IHC group to jointly develop innovative software for hospitals, who were all members of the association. Infohos also provided services to non-members.
- Infohos did not register as a VAT taxpayer, since she thought she was VAT exempt for all her activities.
- The Belgian tax authorities performed a VAT audit and concluded that the mutual services between Infohos and IHC-Group were subject to VAT and that the supply of services to non-association members resulted in the transactions vis-à-vis its members should also be subject to VAT (as otherwise this would be a risk of distortion of competition).
The question is if the “internal” services that are performed by Infohos to the associate members are ‘drawn’ into the VAT, if InfoHos must charge VAT on the services it provides to external parties.
Preliminary question:
Should Article 13 (A) (1) (f), Directive 77/388 / EEC of 17 May 1977, now Article 132 (1) (f) of Directive 2006/112 / EC of 28 November 2006, be interpreted to allow Member States to attach an exclusivity to the exemption stipulated therein whereby an independent group that also performs services to non-members, also for the services provided to members is fully subject to VAT?
Source: MinBUZA (Dutch)
