Health professionals and pharmaceutical products (VAT Notice 701/57)
How to account for VAT on goods and services provided by registered health professionals, including doctors, dentists, nurses and pharmacists.
Official website: gov.uk00
How to use the service
This is determined by reference to your contractual and other arrangements. VAT guide (VAT Notice 700) contains further details that may help you decide whether you’re an agent or principal.
Requirements
Some employment businesses state in their contract terms that their staff are still working under their control and direction rather than the third party to which their staff are being supplied. If that is the case, you are not acting as an ‘employment business’ within the definition of the Employment Agencies Act 1973. The VAT liability of a supply is not determined by the terms of any contract or other documentation alone. If the wording of a contract does not reflect any changes in the way that the business actually operates in practice, the VAT liability of a taxable supply of staff will not change.
Fees
Dispensing doctors receive 2 statements from the NHS , these are, a statement relating to: dispensed drugs their supply of medical services To determine the value of exempt supplies from the drug statement HMRC considers that, whilst not being entirely accurate, the net value of the VAT allowance can be used as a proxy for the exempt supplies of drugs. If you wish to determine exempt values more accurately you may do so, provided that the method used is not arbitrary and can be audited by officers of HMRC. An apportionment of the dispensing fees figure will also need to be made. VAT guide (VAT Notice 700) gives details on acceptable apportionment methods.
Official source
Health professionals and pharmaceutical products (VAT Notice 701/57)
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