Article Summary
This guidance note covers the liability of activities undertaken by hospitals and health institutions. It explains that NHS bodies provide most healthcare services as non-business activities outside the scope of VAT. Private hospitals and health institutions can exempt many supplies if they meet the conditions for healthcare exemption. This includes medical care, surgical treatment, and connected goods. The guidance explores what constitutes a qualifying institution, medical care, and connected goods. It outlines various scenarios of standard rated, zero rated and exempt supplies in this sector. The note covers other relevant exemptions like human blood, organs, patient transport and equipment hire. It highlights that care is needed to determine the correct VAT liability as the same service can have different treatments depending on the aim. While healthcare exemption may seem the default, other liabilities may apply. The guidance helps tax professionals advise hospitals and health institutions on achieving the right VAT outcomes.