Earlier this year, the Tax Appeals Commission (TAC) had to assess whether VAT exemption applied in two separate cases involving a variety of services provided in the medical sphere. The cases highlight the complexity around ascertaining when the exemption from VAT is correctly applicable. Although the focus of this article is on the two TAC determinations, it also covers, where relevant, earlier jurisprudence of the Court of Justice of the European Union (CJEU). A review of the legislative provisions and the case law interpreting those provisions make it clear that the key questions to be addressed in assessing whether the exemption applies are – who is supplying the service, what is the nature of the service being supplied and why is the service being supplied?
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