European Court of Justice Issues Preliminary Ruling on VAT Deductions for Healthcare Services Equipment

The European Court of Justice (ECJ) March 19 issued a preliminary ruling for Case No. C-513/24, on VAT deductions for healthcare services equipment. The taxpayer, a hospital in the Czech Republic, supplied both VAT-exempt healthcare services and VAT-deductible additional services. The taxpayer purchased equipment required for licensing healthcare services and claimed a proportional VAT deduction in a supplementary tax return. The Tax Authority issued a tax adjustment notice excluding the deduction claimed for healthcare service expenses, which the taxpayer challenged. Upon request for a preliminary ruling, the ECJ held that Council Directive 2006/112/EC on the common system of VAT must ...