Medical telephone consultations VAT exempt

After being appointed by public health insurance companies, the taxpayer provided telephone consultations to patients suffering from chronical and long-term illnesses. The consultations were provided by nurses, medical assistants, and in some cases also a physician.

The taxpayer treated this activity as the provision of medical services, and as such exempt from VAT. However, the tax authority objected and stated that the services were subject to tax. A prejudicial question was therefore referred to the CJEU.

The CJEU had previously adjudicated that medical services may be provided almost anywhere. In this case, the court confirmed its previous conclusions and further elaborated on them. The CJEU is of the opinion that tax exemption may be applicable also to health and illness advisory services, subject to meeting two conditions:

First, the consultations must pursue a therapeutic purpose, such as explaining a patient’s medical condition, suggesting changes to therapy or medication. They cannot just involve general information on illnesses and treatments. The second condition concerns the professional and quality level of the staff providing the telephone services; it must be equal to that of other medical service providers.