- A Bulgarian company providing social care services to elderly individuals residing in Germany treated these services as VAT exempt in Bulgaria, as they are linked to welfare and social security work.
- However, the Bulgarian tax authorities argued that the exemption was not justified as the company is not recognized in Germany as being devoted to social wellbeing.
- The court clarified that the law of the country designated as the place of supply of the service determines whether an entity is recognized by the member state concerned as being devoted to social wellbeing. The court also confirmed that registration by a competent authority is sufficient, provided that it involves verification of the social character of the entity within the framework of the conditions set by the court.
Source Pawel Mikula
See also
- Summary of C-620/21 (Momtrade Ruse) – VAT exemption for social services to natural persons in other member states
- C-620/21 (Momtrade Ruse) – Judgment – VAT exemption for social services to natural persons in other member states
- Roadtrip through ECJ Cases – Exemption related to welfare and social security work (Art. 132(1)(g))
