In a context of extreme pressure on public and medico-social budgets, VAT optimization represents an often under-utilized funding lever. Every euro saved is a euro reinvested in improving the support offered to users. However, for many hospitals, local authorities, and associations, due to a lack of resources and time, the complexity of exercising their right to deduct transforms VAT into a hidden cost.
What if mastering the specificities of your status as a partial taxable person and taxpayer was no longer just a disadvantage, but integrated into your funding strategy?
VAT Optimization: Althéa’s Approach
At Althéa, we provide you with unique multi-sector technical expertise, supported by rigorous legal and jurisprudential monitoring. This responsiveness allows us to turn doctrinal developments into immediate financial gains to support your projects.
The objective? To identify untapped savings opportunities to free up the essential room for maneuver needed to fund your public interest missions.
Our regularly challenged savings levers concern the following topics:
- Application of correct VAT rates
- Control of the collected VAT base
- Calculation of the right to deduct
- Deductible VAT base
- Specific tax mechanisms for investment projects
We help you turn the specificities of your status into a financial opportunity.
Our Support Methodology
Our goal: to transform your taxation into a performance lever. At Althéa, we believe in a relationship of trust, tailor-made missions adapted to your constraints and the specificities of your sector. Therefore, we rigorously deploy the following methodology:
Steps:
- Familiarize ourselves with your ecosystem and organizational specificities
- Secure internal practices: taxation allows no approximations
- Identify areas of overpayment: precisely identify areas of overpayment to recover amounts overpaid for non-prescribed periods
- Support your teams: our mission does not end with findings. We guarantee the sustainability of your gains through medium-term support
GDPR Security and Data Protection
With the growing importance of data security, we also guarantee the protection of your information in accordance with the EU General Data Protection Regulation (GDPR).
Operational Impacts of VAT Optimization
Managing Changes in VAT Practices
The evolution of your VAT practices has impacts on invoice recording, prices charged, VAT declarations, payroll tax, etc. We support you in managing these impacts.
Establishing Clear and Reliable VAT Processes
We assist you in adopting the new processes and professional practices implied by the evolution of VAT practices.
Choose Althéa as your partner to optimize your taxation!
Would you like to know more or initiate a tax burden optimization project?
Client Case Study: VAT Recovery in the Hospital Sector
Hospital Taxation
€150,000 in self-financing capacity over three years
Client Profile:
- Sector: Health / Public Hospital Sector
- Activity: Healthcare establishment
Problem:
Complex management of activity sectors (partial taxable person and taxpayer) leading to an omission of VAT deduction on certain expenses.
Before our intervention:
Lack of time and understaffing lead teams to manage daily activities. They do not have time to dissect the specificities of a hybrid VAT regime: care activities (exempt) and ancillary activities (often taxable), and the calculation of deduction rights that accompanies these specificities. By default and for fear of making mistakes, they prefer to overpay rather than underpay.
Our intervention:
Conducting a comprehensive activity-by-activity diagnosis, rectifying the deductible VAT base, calculating the economic allocation key.
Results:
- Immediate cash flow generated: + €60,000 (Non-prescribed period)
- Recurring annual gain: + €30,000 / year
- Reliability: VAT pro rata compliance
Client Case Study: VAT Optimization in the Medico-Social Sector
FAQ
How do I calculate my VAT deduction rights?
When one is a partial taxable person and taxpayer, it is necessary to calculate the “right to deduct.” This right is calculated via the deduction coefficient.
This coefficient is itself composed of: the subjection coefficient (share of operations within the scope of VAT), the taxation coefficient (share of operations within the scope of VAT and taxed), and the admission coefficient (legal coefficient: 0 or 1 depending on the activity carried out).
Can a deduction coefficient apply to a hospital?
Hospitals are exempt from VAT for their main activity. However, they may be subject to VAT for some of their ancillary activities. When a portion of revenue is subject to VAT, it is necessary to: sectorize when possible. Or proceed with partial VAT recovery via the application of an economic allocation key. Although both the deduction coefficient and the economic allocation key serve to allocate the right to deduct VAT, they respond to two very different logics.
How can VAT collection obligations and deduction rights be reconciled for mixed activities?
When a legal entity carries out operations within the scope of VAT, it must collect this VAT at the correct rate (2.1%, 5.5%, 10%, 20%) on its revenues and remit it to the State. In parallel, this taxpayer is entitled to deduct a portion of the VAT burdening its expenses (operating and investment). It is necessary to determine whether recourse to sectorization is possible. Or if a deduction coefficient or an economic allocation key should be calculated.
How should internal flows be managed, particularly when operating within a group structure?
To pool costs and skills, Hospitals are increasingly using Healthcare Cooperation Groups. These groups can provide services and/or deliver goods to their members. Members can provide services to their groups. It is important to clearly identify the scheme in question to precisely establish whether the flows involved are subject to VAT or not.
