VAT treatment of medical services – Revenue guidance updated

Jun 22, 2020

Medical locum services and certain services provided by a pharmacist have been included in Revenue’s updated guidance in the tax and duty manual VAT treatment of medical services.  

The manual on the VAT treatment of medical services has been updated to include: 

  • Services supplied by a pharmacist are generally taxable, but certain qualifying medical services authorised by a pharmacist qualify for the exemption for medical services. For further details, see section 9 of the manual. 

  • Professional counselling and psychotherapists services, provided by persons registered with the Counsellors and Psychotherapists Registration Board are exempt from VAT.  

  • Medical locum services – A locum doctor supplying their service to a medical practice cannot avail of the medical services exemption, as they are supplies of staff, which are subject to the standard rate of VAT.  

A recent Tax Appeal Commissioners determination considered the medical services exemption and based on the particular circumstances of the case, found in favour of the taxpayer. The Tax Appeal Commissioners determination is in the process of appeal to the High Court.