HMRC has updated Notice 701/57 entitled Health professionals and pharmaceutical products. The new version of the notice cancels and replaces the previous version published in July 2018. The notice has been updated to add EEA health professionals to the list of relevant practitioners.

The notice is aimed mainly at registered health professionals, care providers who are not enrolled on any register of medical or health professionals and employment businesses that provide care staff to hospitals or similar healthcare institutions.

The notice covers:

  • the VAT liability of goods and services provided by registered health, medical and paramedical professionals, including the VAT liability of drugs, medicines and other goods available on prescription, as well as contraceptives and smoking cessation products;
  • the circumstances in which VAT registered health professionals may recover the VAT they have incurred on purchases and overheads;
  • specific rules that apply to supplies made by dentists, overseas medical practitioners and deputising doctors;
  • the circumstances in which care services provided by non-health registered suppliers are VAT exempt, and
  • the VAT liability of supplies of health professional staff.

Source: New feed