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?
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 £68,000/yr from 1st May 2009), 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' - 
HMRC list of services liable to VAT -
HMRC
VAT guidance -
Dispensing
Doctors Association guidance -
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