
Healthcare Sector

Our specialists can assist in a range of VAT & Tax areas
VAT liabilities in the healthcare sector are complicated, ranging from institutional liability for hospitals to charges on medical supplies and transport. There are several different VAT categories, for example, including exempt, zero rated, reduced rated and standard rated. Which category is applicable depends on whether the service is providing healthcare or buying/selling a product.
This is a complex area with complex rules, but Deeks VAT Consultancy can help find a path through the maze. We can help determine whether an institution qualifies for state regulated healthcare, including hospitals, nursing homes, hospices, or other institutions. We can help healthcare professionals benefit from VAT exemptions under the relevant laws, and make sure that supplies and purchases are correctly treated from a VAT perspective.
For instance, the supply of medical personnel could be treated as the supply of care which is exempt or as supply of staff, which is standard rated. It all depends on the facts and working practices. Then again, patient transport can be exempt from VAT, zero rated or standard rated all depending on the type of vehicle used.
The healthcare industry as a whole is highly exempt, so it’s important to ensure that qualifying institutions categorise their charges correctly. Incorrectly charged VAT is not recoverable from HM Revenue and Customs, so VAT reporting must get it right first time.
A VAT Health Check is a great option for assessing the correct amount of VAT liability, and we can assist healthcare professionals with setting this up.
Latest news & insights
View all news & insights- News
Deeks VAT News issue 53
In this edition of the Deeks VAT newsletter, we cover key updates impacting your business. Explore insights from the Sonder UT case on self-contained apartments under TOMS, updated HMRC guidance on healthcare exemptions, and a recent FTT ruling on sports drink classification. Learn about chatbot failures in VAT compliance and new digital platform reporting requirements. We clarify VAT scope, provide a guide on the option to tax in property transactions, summarise HMRC’s cladding remediation VAT publications, and offer steps for applying for a VAT Partial Exemption Special Method. Stay informed and compliant with these crucial updates!
- News
Important Update for Serviced Accommodation Providers: Upper Tribunal Reverses Sonder Europe’s TOMS VAT Decision
If you operate in the serviced accommodation sector, the recent developments in the Sonder Europe Ltd case are critical to understand. The Upper Tribunal’s ruling on 14 January 2025 has brought new clarity, but also raised challenges regarding the application of the Tour Operators’ Margin Scheme (TOMS) in the hospitality and accommodation industries. At Deeks […]
- News
HMRC Targets Small VAT-Registered Charities with Educational Campaign on Input Tax Apportionment
HMRC’s One-To-Many team is conducting an educational outreach aimed at small VAT-registered charities with turnovers of up to £2 million. This initiative seeks to raise awareness of the obligation to carry out business and non-business apportionment calculations for input tax. The campaign comes in response to a growing number of smaller charities failing to account […]
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