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KEY POINTS

• Who is a ‘health professional’?
• What services are exempt?
• The implications of the d’Ambrumenil case.
• VAT and other health-related services.
• The apportionment and recovery of VAT.

This article is concerned with three main areas: the treatment for VAT purposes of goods and services provided by registered health medical and paramedical professionals; the special rules that apply to supplies made by dentists overseas medical practitioners and deputising doctors; and when VAT registered health professionals can recover VAT incurred on purchases and overheads.

The basic proposition set out in VATA 1994 is that supplies of healthcare by health professionals and health institutions are exempt supplies under Sch 9 Group 7.

It should be noted however that zero rating is available for the supply of dispensed drugs under VATA...