Social services – VAT-free for all providers
An important change will enter into force on 1 January 2026
Social services will be exempt from VAT, regardless of whether they are provided:
- Care institutions,
- Public bodies,
- Private limited companies or other legal entities.
What’s changing?
Until now (until 31.12.2025), the VAT relief is only available for social services and related goods provided by certain non-profit legal persons.
➡️ Services provided by private companies (e.g. long-term and short-term social care for the elderly or disabled) were subject to VAT at 21%.
From 2026 – The exemption applies to all social service providers, provided that the services are provided in accordance with the Social Services Act.
Goods related to these services will also be exempt.
Article 21 of the VAT Law deletes the provision that the Government may impose conditions or limitations on the application of the exemption (which were not adopted anyway).
