According to a recent ruling by the Fiscal Court of Münster, case no. 15 K 196/11 (appeal V R 40/15), the services provided by a cost-sharing association — such as the provision of medical facilities and equipment as well as the provision of practice premises — are only exempt from VAT under § 4 Nr. 14 d UStG when rendered to the members of the association.
Frequently asked questions
Frequently asked questions
Are services provided by a medical cost-sharing association exempt from VAT?
Services provided by a cost-sharing association, such as the provision of medical facilities, equipment or practice rooms, are exempt from VAT under § 4 No. 14 lit. d UStG. However, this requires that the services are rendered exclusively to the members (participants). Services to non-members, by contrast, are subject to VAT.
What is the prerequisite for the VAT exemption under § 4 No. 14 d UStG?
The exemption applies only if the cost-sharing association provides its services directly to its members. If services are also rendered to third parties, the exemption does not apply to that extent. This restricts the benefit to the purpose of sharing costs among the members.
Which court has ruled on the VAT exemption for cost-sharing associations?
The Tax Court of Münster (FG Münster) ruled in its decision under case number 15 K 196/11 that services provided by a cost-sharing association are only VAT-exempt when rendered to its members. An appeal against this decision has been filed with the BFH under case number V R 40/15.
Which typical services provided by a cost-sharing association qualify for the VAT exemption?
Typical services include making medical facilities and equipment available, as well as providing practice premises to the members. These services are VAT-exempt under the conditions of § 4 No. 14 lit. d UStG, provided they are rendered to the members of the association and serve the direct exercise of their VAT-exempt medical treatment activities.