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VAT exemption for medical care

14 August 2023 / Mike Thexton
Issue: 4901 / Categories: Comment & Analysis , CJEU , EU VAT directive , UK VAT , VATA 1994 , VAT
VAT’s the difference?

Key points

  • UK VAT law has always been derived from the EU VAT directives but since Brexit parliament can change the law in ways that contradict the directive.
  • Until parliament positively changes the UK VAT law it is to be applied as it would have been applied on exit day.
  • Many of the provisions of VATA 1994 Sch 9 exempt ‘the right sort of supply’ by ‘the right sort of person’.
  • Principle of ‘fiscal neutrality’ – if two services were so similar that they competed directly with one another and one was clearly exempt under the law then the other should also be exempt.
  • The purpose of the medical care exemption is to reduce the cost of medical care to the public and any restriction on that should only be imposed in line with the purpose of the exemption.

What difference has Brexit made? In some...

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