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VAT on medical reports

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 £70,000/yr from 1st April 2010), 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) - Bereavement Services

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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