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VAT
VAT exemption for chiropractic treatments?
The Administrative Court (VwGH) clarified that a tax exemption for medical treatments in chiropractic care is only possible if the treatment is carried out solely on the basis of a medical prescription.
A chiropractor with an academic qualification lodged an appeal against a VAT assessment, whereby the tax office classified his services as taxable. The chiropractor regarded these as medical treatments and therefore applied the relevant VAT exemption.
Decision of the VwGH
The VwGH first referred to its existing case law, according to which the medical professions listed in the national Value‑Added Tax Act constitute a conclusive (taxative) enumeration, whereby, in addition to “physicians, dentists, psychotherapists and midwives”, certain freelance activities in the field of medical specialist services may also be exempt from tax. The applicable provisions are those of the respective relevant statutes (e.g. the MTD Act). However, these professional groups may only operate on the basis of a medical prescription and therefore demonstrate a specific medical quality.
Specific medical quality
The VwGH clarified that, for the applicability of the VAT exemption for medical treatments, the comparability of the training and professional qualification of the medical professions listed in this provision is decisive. If comparability can be affirmed, it must be examined whether the service can be provided only on a medical prescription or independently of it.
The exemption from VAT for medical treatments should therefore only be applied when a doctor first determines the necessity of the treatment and issues a corresponding prescription. This link to a medical prescription ensures a specific medical quality, which in turn provides a factual basis for a VAT differentiation.
Decision of the VwGH
The VwGH first referred to its existing case law, according to which the medical professions listed in the national Value‑Added Tax Act constitute a conclusive (taxative) enumeration, whereby, in addition to “physicians, dentists, psychotherapists and midwives”, certain freelance activities in the field of medical specialist services may also be exempt from tax. The applicable provisions are those of the respective relevant statutes (e.g. the MTD Act). However, these professional groups may only operate on the basis of a medical prescription and therefore demonstrate a specific medical quality.
Specific medical quality
The VwGH clarified that, for the applicability of the VAT exemption for medical treatments, the comparability of the training and professional qualification of the medical professions listed in this provision is decisive. If comparability can be affirmed, it must be examined whether the service can be provided only on a medical prescription or independently of it.
The exemption from VAT for medical treatments should therefore only be applied when a doctor first determines the necessity of the treatment and issues a corresponding prescription. This link to a medical prescription ensures a specific medical quality, which in turn provides a factual basis for a VAT differentiation.