Nicotine Addiction No sales tax on diagnosis

No obligation to pay sales tax if a diagnosis has been made

08/16/2012

In principle, doctors and non-medical practitioners are subject to VAT for smoking cessation courses. A VAT exemption applies only if previously a doctor or alternative practitioner made a diagnosis and therefore diagnosed a nicotine addiction in the patient. The verdict was currently the Financial Court in Cologne (Az .: 10 K 2389/09).

According to the judgment, only preventive measures, diagnoses, treatment and cure of illnesses benefit from the tax. Therefore, an individual examination is necessary, "how far the loss of self-control capability has progressed in a particular case" - with appropriate diagnosis and subsequent referral.

It is therefore advisable for doctors and non-medical practitioners to document the diagnoses of their patients when recommending or conducting smoking cessation courses. Because only medical treatment can obtain a sales tax exemption. However, a condition is a diagnosed illness (here: nicotine dependence) and complaints of the patient. If there is no addictive disease, according to the court, it is not a curative treatment. The courses, seminars or measures for smoking cessation then count as so-called wellness performance and must be claimed accordingly by means of VAT.

The ruling is not final yet, as the Finanzgericht has approved a revision of the Bundesfinanzhof in Munich due to its fundamental importance. (Sb)