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Tax Implications of Collaboration by Non-Profit Organizations: Challenges and Solutions

  • Organizations that collaborate often have to pay more taxes than when they work alone
  • Removing tax obstacles for non-profit organizations that want to collaborate deserves more attention
  • Collaborating non-profit organizations usually can eventually reach an agreement with the Tax Authorities, but the rules and procedures are complex and can take years to resolve
  • A group of healthcare providers, including doctors, physiotherapists, and pharmacists, had to charge VAT because they collaborated through a foundation
  • The foundation was established to improve care for patients with chronic or complex conditions
  • Normally healthcare providers are exempt from VAT, but the exemption does not apply to the foundation
  • The dispute with the Tax Authorities is now with the Supreme Court.

Source: taxence.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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