Commentary

701/57/20 Health professionals and pharmaceutical products

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

701/57/20 Health professionals and pharmaceutical products

Part V8 HMRC Notices | Commentary

701/57/20
Health professionals and pharmaceutical products

November 2020

This notice cancels and replaces Notice 701/57 (November 2012).

1 Overview

1.1 This notice

This notice explains:

  1.  

    •     the VAT liability of goods and services provided by registered health, medical and paramedical professionals, including the VAT liability of drugs, medicines and other goods available on prescription, as well as contraceptives and smoking cessation products;

  2.  

    •     the circumstances in which VAT registered health professionals may recover the VAT they have incurred on purchases and overheads;

  3.  

    •     specific rules that apply to supplies made by dentists, overseas medical practitioners and deputising doctors;

  4.  

    •     the circumstances in which care services provided by non-health registered suppliers are VAT exempt;

  5.  

    •     the VAT liability of supplies of health professional staff.

For details of supplies made by hospitals, hospices, pathology laboratories or other state-regulated institutions providing healthcare, read Notice 701/31 “Health institutions supplies”.

For details of the VAT relief for goods and services provided to disabled persons, read Notice 701/7 “Reliefs from VAT for disabled and older people”.

Main narrative treatment—V4.146, V4.281.

1.2 Changes to this notice

EEA health professionals have been included in the list of relevant practitioners at paragraph 3.2.3 with effect from 1 April 2020.

1.3 Who should read this notice

You should read this notice if you're:

  1.  

    •     a registered health professional

  2.  

    •     a care provider who is not enrolled on any register of medical or health professionals

  3.  

    •     an employment business that's providing care staff to hospitals or similar healthcare institutions

1.4 The law

This notice covers the following areas of VATA 1994:

  1.  

    •     exemption for services

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