ARTICLE · 24 APRIL 2024

VAT For Doctors Explained: Registration, Exemption And Benefits

Price Bailey

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The majority of the services provided by doctors' practices are VAT free. Good news one would think; no need to charge VAT and no need to deal with VAT returns and inspections.

United KingdomTax

The majority of the services provided by doctors' practices are VAT free. Good news one would think; no need to charge VAT and no need to deal with VAT returns and inspections.

However, there is one often repeated question from practices...

"How can we reclaim the VAT we are charged?"

The first point to make is that if a practice only makes exempt supplies (of medical services) it is not permitted to register for VAT and consequently cannot recover any input tax.

Therefore we must look at the types of supplies that a practice may make that are taxable (at the standard or zero rate).

If any of these supplies are made it is possible to VAT register regardless of the value of them.

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