Services exempt from VAT are not subject to value added tax.
The exempt services are set out in Article 21 of the VAT Act. However, it may be possible to opt for taxation.
Services exempt from VAT
In the case of services exempt from VAT, no input tax deduction can be made. However, it is possible to opt for taxation for almost all exempt services. This means that the service is nevertheless properly charged with VAT. In return, however, an input tax deduction may be made.
It is not possible to opt for insurance and reinsurance transactions, for transactions in the area of money and capital transactions as well as for transactions for betting, lotteries and other games of chance with monetary stakes.
The following areas, among others, are exempt from the value added tax:
- Hospital treatment and treatment by doctors, dentists, etc. in the field of human medicine
- Services obtained from social assistance and social security institutions
- Certain services in the field of education and training
- Provision of cultural services such as theatre or film screenings
- Services provided by the compensation funds
- Disposal of agricultural, forestry and horticultural products obtained on the own holding
- Services within the same community
In addition, there are other services that are exempt from VAT. There is often uncertainty as to whether a service is exempt or not.
