Service-Tax

Physiotherapy services and VAT deduction

Physiotherapy services contribute to improving the health of patients. Due to the aging of the population, they are becoming more and more popular. Therefore, many educated physiotherapists set up their own companies providing services of this type. However, what is the issue of VAT taxation in the provision of physiotherapy services? We answer below.

Physiotherapy services and the act on medical activity and the act on VAT

Services provided as part of medical care, which are used to prevent, preserve, save, restore and improve health, include services provided in the following professions:

doctor, dentist,
nurse and midwife,
medical services referred to in art. 2 clause 1 point 2 of the act on medical activity,
psychologist.

According to the regulations, physiotherapy services are classified as medical professions.This profession is performed by a person authorized to provide health services under separate regulations, as well as a person who has acquired specialist qualifications to provide health services in a specific scope or in a specific field of medicine.

Physiotherapy services and VAT

As is the individual interpretation issued by the director of the Tax Chamber in Poznań of April 29, 2011, ref. No. ILPP2 / 443-274 / 11-4 / AK, physiotherapy services are exempt from VAT. However, in order for physiotherapy services to benefit from VAT exemption, they must be used to restore, rescue, improve and protect health.

At the same time, it should be borne in mind that treatments that have a beneficial effect on the body and improve its aesthetic values are not subject to the VAT exemption in question.

VAT rate for therapeutic and relaxing massage

If the taxpayer provides therapeutic and classic massage services, which serves to prevent behavior, rescue, restore and improve health, it may benefit from VAT exemption pursuant to Art. 43 sec. 1 point 19 of the VAT Act.

The relaxing massage service, on the other hand, is not intended to preserve, save, restore and improve health. Therefore, this activity is not exempt from VAT. The provision of relaxing massage services should be taxed at the rate of 23%.

Which physiotherapy services can be exempt from VAT?

As it results from the individual ruling issued by the director of the Tax Chamber in Katowice no. IBPP3 / 443-1376 / 14 / AŚ on February 27, 2015, the following and discussed below may benefit from physiotherapy services:

Exercises under the instruction of a physiotherapist in a brine pool - they serve, among others, elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases restoring lost efficiency.

Exercises under the instructions of a physiotherapist in the gym - they are used, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and, in some cases, restoration of lost efficiency.

Rehabilitation hydromassage application while bathing - serves, among others, elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases restoration of lost efficiency, are performed with the use of specialized equipment.

Pearl bath application - serves, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases restoration of lost efficiency, are performed with the use of specialized equipment.

Pearl-ozone bath application - serves, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases restoration of lost efficiency, are performed with the use of specialized equipment.

Partial massage - serves, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases also restoring lost fitness through specialized individual manual therapy.

Manual lymphatic massage - serves, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases also restoring lost fitness through specialized individual manual therapy.

Mechanical vacuum massage - serves, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases also restoring lost fitness through specialized individual manual therapy.

Vacuum point mechanical massage - serves, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases restoration of lost efficiency, are performed with the use of specialized equipment.

Vibration massage - serves, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases restoration of lost-efficiency through specialized-individual - manual therapy.

Dry mechanical hydromassage - serves, among others. elimination or reduction of causes and symptoms related to various types of dysfunctions or pains in muscles, joints and nerves, and in some cases restoration of lost efficiency, are performed with the use of specialized equipment.

Therefore, when providing physiotherapy services, you should carefully analyze the treatments performed in terms of the possibility of VAT exemption.