Court rules WA premium recharging to MSB exempt from VAT, benefitting medical practice

• Court Zeeland-West-Brabant ruled that passing on liability insurance premiums from a hospital to a MSB is exempt from VAT
• This is beneficial for the practice, as MSBs usually cannot claim input VAT deduction
• Tax authorities previously stated that passing on liability insurance premiums is subject to VAT
• Stakeholders are advised to formally object if they are charged VAT on these pass-on premiums
• The court determined that the insurer, not the hospital, indemnifies the MSB from liability
• The court found that there is no consideration for the passing on of liability insurance premiums from the hospital to the MSB

Source: meijburg.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.