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Medical VAT
The three-month consultation reviewing the scope of the VAT exemption on medical services and the impact of the European Court of Justice's decision in Dr Peter 'Ambrumenil and Dispute Resolution Services (C-307/01) in which it was held that the VAT exemption for medical care, as provided by registered health professionals, should be restricted to services which are intended principally to protect the health of an individual, has closed and HMRC are considering the responses. However, it has become apparent that implementation of this change to the application of the VAT exemption for medical care from 1 April 2006 would impose considerable compliance difficulties, so it will be postponed. Doctors and other health professionals should continue to follow the advice laid down in Business Brief 29/03 (see Update, Taxation, 22 January 2004, page 374). A further announcement on implementation will be made later this year.
