Q:
I have a question my trust does lab testing for other hospitals in Ireland and Portugal. As an NHS organisation we do not charge VAT. What is the impact of VAT to the other no Uk hospital and my trust?
A:
Hi
It’s a bit of a big subject really but in principle, the provision of health services provided by NHS hospitals is exempt from VAT. This means that VAT isn’t charged on any “income” but the NHS can’t recover any VAT on its costs. You can get more information from HMRC’s VAT Notice 701/31: Health Institutions http://tinyurl.com/cadkjrb.
The exemption is laid down in the EC VAT Directive so similar provisions apply in other EC countries.
Marie