Tag Archives: VAT-internal-guidance

VAT: Updated HMRC guidance on exemption for healthcare supplies

By   23 December 2024
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HMRC has published new guidance in its internal manual VATHLT2035.

It covers the services of the medical and paramedical professions: Anaesthesia Associates and Physician Associates.

Regulation for Anaesthesia Associates (AAs) and Physician Associates (PAs) came into effect on 13 December 2024. A full registration is required by December 2026. The exemption will only apply to the AAs and PAs that have joined from the date of registration.

Anaesthesia Associates

AAs are specialised practitioners trained to perform certain medical procedures related to anaesthesia under the supervision of qualified medical personnel. They are not doctors but play a crucial role in the healthcare system by assisting in the administration of anaesthesia and monitoring patients during surgical procedures. AAs are authorised to perform specific procedures they are trained and approved for. They will be regulated by the General Medical Council (GMC). Their services will be exempt from VAT, provided they are carried out for the purpose of medical care.

Physician Associates

PAs are healthcare professionals who support doctors in diagnosing and managing patients. They are trained to perform various medical procedures and provide care under the supervision of doctors. PAs are not doctors but are essential members of the multidisciplinary healthcare team, enhancing the capacity of healthcare services. They are meant to supplement, not replace, the role of doctors. Their services will be exempt from VAT, provided they are carried out for the purpose of medical care.

The exemption is via The VAT Act 1994, Schedule 9, Group 7.

VAT: HMRC manual on supply and consideration updated

By   9 September 2024
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HMRC internal manual – VAT Supply and Consideration has been updated.

The manual provides guidance on determining the liability of the supply of goods or services effected for a consideration including:

  • basic principles and underlying law
  • identifying a supply
  • consideration
  • illegal supplies
  • goods or services
  • supplies of goods for both consideration and no consideration
  • supplies of services for both consideration and no consideration
  • definition of consideration
  • indicators of consideration
  • off-setting
  • compensation
  • payments which are not consideration
  • payments in specific sectors
  • settlement of disputes

The amendments are in respect of payments that are not consideration: Carbon offsetting which adds two new pages giving examples of outside the scope activities and commentary on other ecosystem services.