Taxation policy
Article 13(A)(1) of the Sixth Directive 77/388/EEC of 17 May 1977
requires Member States to exempt from VAT "certain activities in the public
interest". These include hospital and medical care, goods and services closely
linked to welfare and social security work or the protection of children
and young persons, education and training for young persons and so on.
Many organisations in the field of disability are, of course involved in the provision of just such services and their transactions are exempt from VAT, provided that they obtain prior authorisation from the Member State in which they are established, i.e. they are exempt from the need to file VAT returns, to charge VAT to their clients or to pay output tax. In addition, under Article 13(A)(2) Member States can make the granting of any of the listed exemptions to any body (other than those governed by public law) subject to a number of conditions designed in effect to ensure that exempt bodies are bona fide non-profit organisations whose activities will not affect the competitive position of taxed commercial enterprises.
In addition to the exemptions mentioned above, in a number of Member States, "zero rate" for certain supplies related inter alia to material and devices for disabled people is authorised.
