As a result of the coronavirus crisis, personnel are currently being hired in and loaned out on a regular basis within the healthcare sector. Medical aids are also frequently being supplied free of charge. To ensure that VAT rules do not present an obstacle to the above, the Ministry of Finance has introduced two changes.


Hiring in and loaning out of healthcare personnel

Under certain conditions the loaning out of healthcare personnel is exempt from VAT. One requirement here is that the healthcare institution is itself exempt from VAT. In addition, only the gross payroll costs may be charged, plus expenses of no more than 5%. The loaning out of personnel must also not generate a profit or have a profit-making objective.


Please note:

This measure does not affect the deduction of input tax by the supplier. That means, for example, that a supplier of personnel who normally provides services that are subject to VAT and is therefore able to deduct the input tax can continue to do so.


Healthcare products supplied free of charge

The VAT on medical aids and medical equipment supplied free of charge to healthcare institutions can be deducted under certain conditions. The products in question must feature on a list and be connected with the coronavirus.



One condition is that the costs form part of the entrepreneur’s general expenses. The deduction of VAT for this entrepreneur is determined on the basis of the total turnover, not including the products supplied free of charge. Lastly, it must be stated on the invoice that use is being made of the exemption and the details relating to the exemption must be retained in the company’s accounting records.


Retroactive effect

The approvals by the Ministry apply with retroactive effect from 16 March 2020 and will remain in force until 16 June 2020.