VAT
on medical reports
Following
a European Court of Justice (ECJ) decision, from 1st May 2007 certain
services which are provided by GPs will no longer be VAT-exempt.
In summary,
services which are principally to protect (including maintain or restore)
the health of an individual will remain VAT-exempt.
Services which are to allow a third
party to make a decision of a non-therapeutic nature such
as:
- Reports
for solicitors/witness testimony or reports for litigation, compensation
or benefit purposes
- Signatures
on passport applications
- Reports
or medicals for the purpose of providing certain fitness medical
certificates [inc. HGV medicals, pre-employment checks]
- Paternity
tests
- Some
occupational health services
will
no longer be VAT-exempt.
What
does this mean for Practices?
From
1st May 2007:
Practices
which are already VAT registered will be obliged
to add VAT to their charges for non-exempt services.
Practices
which are not VAT registered will need to consider
the total annual value of their charges for the non-exempt services,
and if this:
- exceeds
the registration threshold (which is £64,000/yr from 1st April
2007), they will need to register for VAT and thereafter add VAT
to their charges for such services
- does
not exceed the registration threshold, they need take no action,
other than periodically monitoring the situation and registering
for VAT if the threshold is exceeded
Practices
should consider seeking advice from their Accountants on VAT-related
matters.
Fees
for Cremation certificates (forms B, C & F) are
VAT exempt (i.e. VAT is not to be charged on these fees) - more
Further
information
HMRC guidance 'VAT for Medical Professionals' - go
there
HMRC list of services liable to VAT - go
there
HMRC
VAT guidance - go
there
BMA guidance
- go
there
Dispensing
Doctors Association guidance - go
there
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