Y'all can now manage your own care with a "Personal Budget"! Federal Fiscal Court rolls the dice in favor of individual freedom!
Court Alleviates Financial Burden for Disabled and Elderly through 'Personal Budget' Solution - Court eases financial burden for disabled and caregivers by abolishing "individual budget" requirements
Ever wanted more control over your life? A "Personal Budget" could be your ticket— bundling social benefits for disabled or care-dependent individuals, that would otherwise be scattered across various service providers. Check out why this self-determination tool is causing a stir!
Here's a juicy case that's keeping everyone on the edge: a Hessen-based company, specializing in assistance for folks struggling with mental health, substance abuse, or intellectual disabilities, was found in the right. Their clients paid for these services using their Personal Budgets, granted by the Hessian State Welfare Association—because who knows what you want better than you, right?
But here's the catch—there was a tiff with the tax office over whether the company should collect and pay VAT on the associated revenues (you know, that pesky tax% marker). The basic gist is: care and support services provided by a company are exempt from VAT, as long as they're at least 25% funded by health or social insurance funds. The tax office countered that the company didn't settle the services with other social service providers—only with the clients themselves.
But wait—hear this: according to the Munich ruling, it's covered indirectly in this case! The scratch for the Personal Budget comes from social service providers, who stamp their approval on which services the money can be spent on. While the choice of provider and payment procedures fall on the affected individuals, economically it's still the social insurance funds that carry the load. Gee, economically speaking, they're in it together, folks!
Now, hang on—the Finance Court of Baden-Württemberg is still working on finalizing whether the plaintiff company strictly billed services that the social service providers finance (fingers crossed it goes well).
So, there you have it—self-determination coming to the care-dependent. Fingers crossed we see more of this empowering approach in the future!
- Federal Fiscal Court
- Care-Dependent Individuals
- VAT
- Hessen
- The Federal Fiscal Court's decision in favor of the Hessen-based institution, specializing in health-and-wellness services, has significant implications for the community institution sector, as it allows care-dependent individuals to use their Personal Budgets to fund services without VAT charges, given that at least 25% of the services are funded by health or social insurance funds.
- The empowerment of care-dependent individuals through the use of Personal Budgets could potentially extend to the finance and business sectors, as this self-determination tool could lead to increased demand for health-and-wellness and social services, ultimately shaping the landscape of these industries.
