The ECJ has released the facts and question in the case C-513/24 (Oblastní nemocnice Kolín).
Article in the EU VAT Directive
Article 173(1) of the EU VAT Directive 2006/112/EC.
Article 173 (Right to Deduct VAT – Proportional Deduction)
1. In the case of goods or services used by a taxable person both for transactions in respect of which VAT is deductible pursuant to Articles 168, 169 and 170, and for transactions in respect of which VAT is not deductible, only such proportion of the VAT as is attributable to the former transactions shall be deductible.
The deductible proportion shall be determined, in accordance with Articles 174 and 175, for all the transactions carried out by the taxable person.
Facts
- The appellant, a hospital, filed a claim for a partial tax deduction in relation to services and equipment used for both healthcare services (non-deductible) and other services (deductible). The Tax Office partially recognized the deduction, but the appellant challenged the decision.
- The Prague Regional Court dismissed the appeal, stating that only costs directly related to the provision of other services could be considered overhead costs eligible for deduction.
- The appellant appealed the judgment, arguing that all goods and services related to its operation should be considered overhead costs.
- They claimed that the equipment and services were necessary for obtaining a healthcare service license, meeting minimum requirements set by regulations.
- The appellant argued that these costs should be deductible as they were not acquired exclusively for a specific purpose.
Questions
Must Article 173(1) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax be interpreted as meaning that, where a transaction in respect of which VAT is deductible depends on the possession of a licence to carry out transactions in respect of which VAT is not deductible (in this case, health services), do the goods and the services relating thereto, which constitute, under national legislation, the minimum technical and material equipment for healthcare facilities, on which the provision of healthcare services depends, correspond to general (overhead) costs directly and immediately linked to the overall economic activity of the taxable person, and hence, give rise to a right to deduct a proportion of the tax?
Source
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