Waiver of VAT Exemption for Doctors and Clinics: The waiver of VAT exemption under Article 9 of the VAT Code (CIVA) applies specifically to healthcare professionals, such as doctors, who are exempt from VAT on the supply of healthcare-related services. However, there are situations in which these professionals can choose to waive this exemption.

Healthcare professionals who choose to waive the VAT exemption are no longer obliged to charge VAT on services rendered, but can deduct VAT on their own expenses, such as purchases of medical supplies, services or equipment. This decision can be advantageous in certain situations, especially when the doctor mostly works for companies or institutions that are also subject to VAT, as they will be able to recover the VAT on their invoices.

What's more, the exemption waiver is irreversible for a period of five years, which requires careful evaluation. This process involves submitting an application to the Tax Authority and, once accepted, the healthcare professional must fulfil the tax obligations of the normal VAT regime, such as submitting periodic returns and paying the tax due.

It is essential that the professional consults a certified accountant before making this decision, in order to assess whether the waiver pays off in the long term, considering their cost structure and client profile.

The role of Serro & Andrade

At Serro & Andrade, we closely monitor changes in the tax system and are ready to help companies comply with these new requirements. With an experienced team in consulting and accounting, we assist our clients in adapting to new tax realities, such as the 15% minimum tax for multinationals.

If your company is affected by these new rules or if you want to understand how this measure could impact your operations, contact us. We offer specialized consulting to ensure your fiscal obligations are met efficiently and securely.