- Opportunity for Clarity: Advocate General Ettema views the appeal in cassation as a chance for the Supreme Court to clarify the VAT taxability of services provided by ‘low care’ hospices, particularly regarding their tax status and entitlement to deduct turnover tax.
- Divergent Court Opinions: Courts have varied in their rulings on whether the services of ‘low care’ hospices constitute a single supply (care with accommodation) or two separate services (accommodation and volunteer care), leading to different interpretations of applicable VAT exemptions.
- Conflicting Judgments: The District Court of The Hague ruled that the main service is the temporary rental of guest rooms, subject to VAT, while the Hague Court of Appeal classified the services as exempt from VAT, highlighting the need for the Supreme Court to unify the legal interpretation.
- Critique of Court of Appeal: The Advocate General criticized the Court of Appeal for insufficient reasoning in its decision, arguing that it failed to adequately consider EU guidance on determining single versus multiple supplies and misapplied the criteria for VAT exemptions.
- Hospital Exemption Discussion: The AG concluded that the services provided by the hospice do not qualify for the ‘hospital exemption’ since they only involve general care. The AG recommends that the Supreme Court uphold the foundation’s appeal and instruct a reassessment of the nature of services provided and their tax implications.
Source Taxence
