By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Dentists
  • Liability of supplies
  • VAT registration
  • Recharging costs

Liability of supplies

The following person:

  • registered in the dentists’ register
  • dental care professionals registered in the dental care professionals register established under the Dentists Act 1984, s 45 (subscription sensitive)
  • a dental technician

VATA 1994, Sch 9, Group 7, Items 2, 2A; VAT Notice 701/57 ; VATHLT2440; SI 2005/2011, Sch 6, para 3; SI 2007/206 (both subscription sensitive)

can provide the following exempt services:

  • dental care and treatment
  • drugs or appliances provided in the course of dental care and treatment
  • dental prostheses (including dentures, artificial teeth, crowns, bridges, pilates and other orthodontic appliances)

The exempt applies to both NHS and private patients where the person providing the services is eligible for the exemption

A corporate body to exempt its supplies providing the services are wholly performed or directly supervised by someone in the dentists’ register or the roll of dental auxiliaries. Note 2 does not mention dental technicians specifically, but HMRC has stated that it will accept that supplies made by these through a corporate body can also be exempt from VAT.

VATA 1994, Sch 9, Group 7, Note 2; VATHLT2450

The separate supply of the services of a dental hygienist would also be exempt provided the person performing the services is enrolled on the roll of dental auxiliaries under the Dentists Act 1984, s 45 (subscription sensitive).

The provision of advisory services, such as advising on clinical governance, poor performance and standards which are supplied by dentists to Primary Care Trusts (PCT) on a self-employed basis are generally liable to VAT at the standard rate. Where such services are provided on an employee (not

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