The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Generally speaking, supplies of services consisting of medical care or health supplies are exempt from VAT. As a result, no VAT is charged on the services provided, but no input tax can be reclaimed on costs associated with the provision of these services. Normally only supplies made by registered health professionals can be exempt from VAT. A ‘health professional’ is anyone who is registered or enrolled as any of the following:
VATA 1994, Sch 9, Group 7, Item 1(a); SI 2006/1914; SI 2007/206 (both subscription sensitive); 2006/112/EC , Article 132(1)(b), (c), (e); De Voil Indirect Tax Service V6.202, V4.146 (both subscription sensitive); Notice 701/57 ; VATHLT2030
This means that therapists such as acupuncturists, psychologists, hypnotherapists and others who do not have statutory registers, will make supplies that are liable to VAT at the standard rate. However, psychiatrists are qualified medical practitioners and their services are therefore exempt from VAT.
If a person is included in one of health professional’s listed above, then the person’s services will be exempt from VAT when the following conditions are satisfied:
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