Commentary

RCB/16/13 VAT—clarification of HMRC's policy on laboratory pathology services provided by state-regulated institutions

Part V16 Forms and other HMRC material

RCB/16/13 VAT—clarification of HMRC's policy on laboratory pathology services provided by state-regulated institutions

RCB/16/13 VAT—clarification of HMRC's policy on laboratory pathology services provided by state-regulated institutions

Revenue & Customs Brief, Issue 16. 5 July 2013

This brief provides clarification about Her Majesty's Revenue and Customs' (HMRC) policy on when laboratory pathology services are exempt from VAT.

Readership

Health professionals, hospitals, hospices, nursing homes, pathology laboratories and any other state regulated institutions providing medical care. A state regulated institution includes any provider (including companies operated for profit) which requires approval, licensing, registration or exemption in relation to those activities.

Action

To be aware of HMRC's clarification of policy on supplies of laboratory pathology services.

Background

As a result of the Carter report on the review of NHS outsourcing services (2006), which recommended the streamlining of NHS services, some NHS pathology services have been, or are being, outsourced to the private sector. HMRC consider that such services are exempt from VAT. Some suppliers of these services challenge that view. They think that such supplies are liable to VAT on the grounds that:

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