Medical Services and Locums

A couple of things have been happening in the medical field, not an industry that comes often to the attention of the VAT Inspector. The first is the publication by Revenue last year of a leaflet on VAT and Medical Services. Practitioners were long of the view that any service supplied by a medical professional was exempt from VAT. A number of cases decided by the European Court of Justice (ECJ) dispelled that myth.

The Revenue leaflet sets out their stall as to what medical services do, and do not, qualify for VAT exemption. It highlights that there are two issues to consider in deciding whether a service is exempt from VAT – the professional medical status of the service provider and the purpose of the service itself. The service must be intended, primarily, to treat the patient. The leaflet does leave one or two grey areas for interpretation.

If you are concerned about the correct VAT status which applies to any of your services, or your client’s services,┬áplease contact us for advice.