Readers' forum : Doctored VAT

My client runs a staff agency in the UK and is expanding into the medical profession. He has some prospective work that involves supplying doctors to a hospital in Dubai. As I understand it his income could be either a one-off introductory fee from the Dubai hospital for finding it doctors or a regular arrangement where he charges an hourly rate for the doctor – plus other costs such as flights and accommodation.

All work will take place in Dubai but all of the doctors will be self-employed and UK-based. Most of the doctors are VAT-registered. My query is whether my client should charge VAT to the Dubai hospital – and should the self-employed doctors then charge VAT to my client on their invoices in the case of the hourly rate arrangements?

Further what is the position regarding input tax recovery? Medical services are VAT-exempt so I...