Commentary

V16.922 VAT—further information for health professionals affected by the changes to the exemption for medical services announced in Revenue & Customs Brief 06/07

Part V16 Forms and other HMRC material

V16.922 VAT—further information for health professionals affected by the changes to the exemption for medical services announced in Revenue & Customs Brief 06/07

V16.922 VAT—further information for health professionals affected by the changes to the exemption for medical services announced in Revenue & Customs Brief 06/07

Information Sheet 5/07, February 2007

1 Introduction

1.1 What is this Information Sheet about?

In the case of Dr Peter d'Ambrumenil and Dispute Resolution Services (C-307/01), the European Court of Justice (ECJ) ruled that the UK exemption for medical services is too wide. As a result, the Government is amending UK legislation as it relates to the exemption from VAT for health services with effect from 1 May 2007, and some services, currently exempt, will become liable to VAT at the standard rate.

Accordingly, health professionals registered on a statutory professional register whose taxable income (including VAT) exceeds the VAT registration threshold will need to register for VAT.

Registered health professionals who are already VAT registered, for example, as a result of dispensing changes which took effect on 1 April 2006, will need to ensure that they account for VAT as appropriate on any affected services.

This Information Sheet provides:

  1.  

    —     advice about how health professionals can register for VAT

  2.  

    —     information about the VAT treatment of the goods and services they provide

  3.  

    —     advice about how much VAT can be recovered on purchases.

It is intended to supplement, not substitute, existing HMRC guidance.

2 Registration

2.1 How and when to register for VAT

2.1.1 Before applying to register

For help with VAT registration and for general advice on VAT matters, the CD Rom “Getting Started in VAT” can be obtained from the National Advice Service. It is

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