United Kingdom Tax Tribunal Clarifies VAT Exemption on Medical Service Supplies

The United Kingdom First-Tier Tax Tribunal Nov. 7 issued a judgment in Case No. TC09678, clarifying the VAT exemption on medical service supplies. The taxpayer, a medical staffing business, supplied nurses and care assistants to private hospitals and care homes. The taxpayer treated the reimbursement of staff employment costs as being exempt from VAT and only accounted for VAT on its commission. The Tax Agency denied the exemptions and issued VAT assessments. On appeal, the Tax Tribunal found that: 1) the supplies weren’t exempt from VAT because the taxpayer wasn’t a state regulated institution under the VAT law; and 2) ...