Brussels, 21/01/2016 (Agence Europe) - Assisted-living residences for elderly, non-disabled people may be exempted from VAT in the same way as retirement homes. Exemption may only apply, however, to the provision of adapted accommodation and not to the optional services for which a charge is made and which do not provide support for the elderly or take care of them.
Such was the decision of the Court of Justice of the EU on Thursday 21 January. In its ruling (case C-335/14) the Court followed the opinion offered by the Advocate General in July 2015 (see EUROPE 11356) to the letter on how the sixth VAT directive (77/388/EEC) should be interpreted in relation to assisted-living residences.
The Court took the view that assisted-living residences fall into the same category as retirement homes and be exempted from VAT by virtue of the provision in directive on providing services which are closely linked to welfare and social security and which are carried out by public sector bodies or by charitable organisations.
Optional services, corresponding to services that retirement homes are required to offer, provided to residents and non-residents alike, may also be exempted from VAT. Food and private accommodation cleaning services are examples given by the Court of what may be exempted. Hairdressing and beauty-treatment are examples cited by the Court of services on which there may be not VAT exemption. (Original version in French by Jan Kordys)