Healthcare professionals now provide a wide range of goods and services and the VAT treatment of these needs to be carefully considered.
If the reason for providing the services is to protect, maintain or restore the health of the person concerned, the supply is exempt from VAT. Medical services provided for cosmetic reasons or in connection with a legal or insurance matter, are subject to VAT. We can provide advice as to which services are subject to VAT and to clarify your entitlement to recover VAT on your costs.
HMRC is taking a keen interest in this sector, as evidenced by the number of such cases coming before the Tax Tribunal. In these cases, HMRC may instruct independent healthcare professionals to review the records and services provided, to determine the VAT status. We have experience of reviewing services provided by healthcare professionals and can provide advice on what records need to be maintained, if you wish to argue that the services qualify as exempt medical supplies.
