No VAT deduction for construction of ‘low-care’ hospice in the Netherlands, despite separate nursing care

• Stichting X has no right to VAT deduction for the construction costs of a low-care hospice.
• Despite guests purchasing nursing care from a third party, the services are considered VAT-exempt healthcare and not short-term accommodation.
• Stichting X operates a low-care hospice where guests can rent a room for €35 per day, including meals, and contract nursing care separately.
• The court ruled that Stichting X’s services are VAT-exempt healthcare, including personal care and guidance provided by volunteers and coordinators.
• The provision of a room is considered a part of the service and not the essential feature.
• For guests with a long-term care indication, the service is VAT-exempt under medical exemption, while for those without, it is considered ambulatory healthcare.

Source: taxlive.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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