{"id":1522,"date":"2024-08-30T09:01:27","date_gmt":"2024-08-30T07:01:27","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/doorbelasten-verzekeringspremie-belast-met-btw\/"},"modified":"2026-03-03T10:34:47","modified_gmt":"2026-03-03T09:34:47","slug":"pass-through-insurance-premium-taxed-with-vat","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/doorbelasten-verzekeringspremie-belast-met-btw\/","title":{"rendered":"Recharge of insurance premium charged with VAT"},"content":{"rendered":"

A liability insurance premium passed on by a hospital to an association of medical specialists is subject to VAT. The North Holland District Court<\/a> recently made out.<\/p>\n\n\n\n

Case study<\/h2>\n\n\n\n

The case is as follows. The hospital, as the policyholder, has taken out liability insurance with an insurance company and pays the premium for it to the insurance company. The insurance company's service is exempt from VAT, so the insurance premium is not increased by VAT.<\/p>\n\n\n\n

Medical specialists working in the hospital are co-insured on this insurance. These specialists work in the hospital a on the basis of a framework agreement and a production agreement concluded with the hospital by the cooperative society (CV) of which they are members.<\/p>\n\n\n\n

The hospital passes on the medical specialists' share of the liability insurance premium to the limited partnership. The tax authorities consider that VAT is due on this recharged premium, which the limited partnership obviously cannot deduct because it performs VAT-exempt medical services.<\/p>\n\n\n\n

Views<\/h2>\n\n\n\n

The hospital takes several positions:<\/p>\n\n\n\n

    \n
  • primary: the hospital does not perform a fair service in return for the recharged costs;<\/li>\n\n\n\n
  • In the alternative: the insurance exemption applies;<\/li>\n\n\n\n
  • In the further alternative, the VAVO judgment results in no VAT being payable;<\/li>\n\n\n\n
  • most subsidiary: the doctrine of common costs applies.<\/li>\n<\/ul>\n\n\n\n

    The court held that the hospital did provide a performance in economic terms. That performance means that the hospital indemnifies the medical specialists against damages. And for that performance, the hospital receives compensation from the limited partnership.<\/p>\n\n\n\n

    The Court then decides that the service of indemnifying is substantially different from insurance services. As a result, the insurance exemption does not apply.<\/p>\n\n\n\n

    The VAVO judgment concerns the situation where two legal entities jointly provide one performance to customers. However, the framing of the relationship between hospital and CV, with the framework agreement and the production agreement, is, according to the court, rather a contractor-client relationship than a joint performance towards the patient.<\/p>\n\n\n\n

    The Court also rejected the application of the doctrine of common expense. The insurance policy taken out by the hospital covers more than just professional liability. And the insurance covers more insured persons than just the hospital and the limited partnership.<\/p>\n\n\n\n

    Conclusion<\/h2>\n\n\n\n

    It is not clear whether the court's decision has been appealed. The case underlines once again that when costs are recharged, it cannot be assumed too easily that no VAT is due. Of course, this is especially important when the party to which the costs are recharged cannot deduct the VAT or cannot deduct it in full.<\/p>","protected":false},"excerpt":{"rendered":"

    Een door een ziekenhuis aan een samenwerkingsverband van medisch specialisten doorbelaste premie voor een aansprakelijkheidsverzekering is belast met BTW. Dat heeft de Rechtbank Noord-Holland recent uitgemaakt. Casus De casus is als volgt. Het ziekenhuis heeft, als verzekeringnemer, bij een verzekeringsmaatschappij een aansprakelijkheidsverzekering afgesloten en betaalt de premie daarvoor aan de verzekeringsmaatschappij. De prestatie van de […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1522","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=1522"}],"version-history":[{"count":1,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1522\/revisions"}],"predecessor-version":[{"id":3534,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1522\/revisions\/3534"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=1522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=1522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=1522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}