VAT exemption for patient transportation

Under EU law, the transportation of patients is generally exempt from VAT under certain conditions as a service closely related to social welfare.

The transport of sick, injured or disabled persons by a recognized entrepreneur is exempt from VAT as a "service closely linked to social welfare and social security". It does not matter whether the vehicles used are specially equipped or that it cannot be ruled out that the vehicles are also used to transport persons for whose transportation a specially equipped vehicle was not necessary.

For the Federal Fiscal Court, it was clear that the requirements for VAT exemption under overriding EU law were met, even if German law is structured differently in this case. The extent to which the service would also be partially tax-exempt under other regulations is then no longer relevant, according to the Federal Fiscal Court. Because the plaintiff company also provided special transportation services in addition to pure transportation, there was also no direct competition with cab and rental car companies.