The reduced VAT rate of 6% is applicable on a limitative number of goods and services. Certain medical instruments have been specifically addressed by law. For the storage and transport of blood, the reduced VAT rate is only applicable if these sets can exclusively be used for the storage and transport of blood. Based on the above mentioned news bulletin the reduced VAT rate can now also be applied on the distribution of disposable blood plasma sets (used for blood donors). These sets segregate blood from blood plasma. This additional function does not interfere with the strict requirements for the reduced VAT rate, according to the Dutch tax authorities. The principle element will still be the transportation and storage of blood.
We advise companies to check their administration on the VAT rate of their goods and/or services. Especially if you have doubts regarding the application of the reduced VAT rate. Within the health care there can be a lot of variations between the applicable VAT rate on the supply of goods and services. Therefor it is essential to check your administration in this regard.
Furthermore if you provide combinations of goods and/or services that are taxed with a combined VAT rate (a combination of 6%, 21% or are partially VAT exempt, please note that your administration needs to contain a breakdown per VAT item stating which item is taxed at what VAT rate.
A VAT check on the applicable rate can provide you with certainty and also provide the changes to optimize your administration and profits.