Comments on: VAT exemption of health and medical supplies: A tale of two territories http://www.thevatpractice.ie/blog/vat-exemption-of-health-and-medical-supplies-a-tale-of-two-territories/ Munster’s first independent VAT consultancy practice providing specialist VAT and Indirect tax advisory, assurance and interim management support services to owner managed businesses, small & medium enterprises, accountants and legal practices. Wed, 06 Sep 2017 10:53:06 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Clodagh http://www.thevatpractice.ie/blog/vat-exemption-of-health-and-medical-supplies-a-tale-of-two-territories/comment-page-1/#comment-1204 Clodagh Wed, 06 Sep 2017 10:53:06 +0000 http://www.thevatpractice.ie/?p=716#comment-1204 Hi Nick, Thank you for the advice published in this blog. I hope you don't mind me picking your brain. I work in recruitment and supply staff to clients. I have been asked by a client that provides dental services to supply them staff that will work primarily in customer service over the phone as agency employees. This client don't want us to charge VAT on the payment of staff wages saying they should only pay VAT for the recruitment fee associated with it. By reading the VAT Act and annexes there is certainly a grey area but as the recruitment agency will be the employer of these staff I don't think this is actually feasible as they are not working for the medical company directly. Any suggestion will be greatly appreciated. Thanks, Clodagh Hi Nick,

Thank you for the advice published in this blog. I hope you don’t mind me picking your brain.

I work in recruitment and supply staff to clients. I have been asked by a client that provides dental services to supply them staff that will work primarily in customer service over the phone as agency employees.

This client don’t want us to charge VAT on the payment of staff wages saying they should only pay VAT for the recruitment fee associated with it.

By reading the VAT Act and annexes there is certainly a grey area but as the recruitment agency will be the employer of these staff I don’t think this is actually feasible as they are not working for the medical company directly.

Any suggestion will be greatly appreciated.

Thanks,
Clodagh

]]> By: Nick Ryan http://www.thevatpractice.ie/blog/vat-exemption-of-health-and-medical-supplies-a-tale-of-two-territories/comment-page-1/#comment-269 Nick Ryan Mon, 28 May 2012 20:40:20 +0000 http://www.thevatpractice.ie/?p=716#comment-269 Hi Kieran, Thank you for the comments and feedback, always welcomed. Revenue are certainly focusing on this area with dental associates also falling under their scrutiny. Interesting days ahead I suspect. Nick Hi Kieran,

Thank you for the comments and feedback, always welcomed. Revenue are certainly focusing on this area with dental associates also falling under their scrutiny. Interesting days ahead I suspect.

Nick

]]> By: Kieran Coughlan http://www.thevatpractice.ie/blog/vat-exemption-of-health-and-medical-supplies-a-tale-of-two-territories/comment-page-1/#comment-266 Kieran Coughlan Wed, 23 May 2012 09:10:46 +0000 http://www.thevatpractice.ie/?p=716#comment-266 We deal with a number of incorporated medical companies. Your article is succinct and very relevant to current Revenue focus. You have hit the nail on head in relation to the distinction between the supplies - the upshot is that the exemption from VAT only applies in relation to the actual provision of medical services. Where a medical professional provides services to another doctor , hospital or through a recruitment agency, regardless of whether he/she does so through his or her limited company or as a sole trader then I would be of the opinion that there is in fact multiple services being supplied, no doubt the patient is receiving medical care but simultaneously there is another service, which at first view is not apparent, this being a service supplied to the hospital or doctor - its best explained by asking the question "What is the hospital paying the doctor or the doctors company for?" There is a service provided to the hospital and its not a medical service i.e. the doctor isn't curing the hospital - the principle of multiple supplies has long been established and Revenue Technical Services have confirmed their position in agreement with this analysis Kieran Coughlan, kieran.coughlan@cxc.ie We deal with a number of incorporated medical companies. Your article is succinct and very relevant to current Revenue focus. You have hit the nail on head in relation to the distinction between the supplies – the upshot is that the exemption from VAT only applies in relation to the actual provision of medical services. Where a medical professional provides services to another doctor , hospital or through a recruitment agency, regardless of whether he/she does so through his or her limited company or as a sole trader then I would be of the opinion that there is in fact multiple services being supplied, no doubt the patient is receiving medical care but simultaneously there is another service, which at first view is not apparent, this being a service supplied to the hospital or doctor – its best explained by asking the question “What is the hospital paying the doctor or the doctors company for?” There is a service provided to the hospital and its not a medical service i.e. the doctor isn’t curing the hospital – the principle of multiple supplies has long been established and Revenue Technical Services have confirmed their position in agreement with this analysis
Kieran Coughlan, kieran.coughlan@cxc.ie

]]> By: frank wharton http://www.thevatpractice.ie/blog/vat-exemption-of-health-and-medical-supplies-a-tale-of-two-territories/comment-page-1/#comment-198 frank wharton Fri, 02 Mar 2012 16:57:07 +0000 http://www.thevatpractice.ie/?p=716#comment-198 REvenue in their vat on medical services leaflet state -In some cases health care professionals supply their services through an incorporated entity. The ECJ (European Court of Justice) in the case of Kugler C -141/00 held that the exemption is not dependant on the legal form of the taxable person supplying the medical services so the exemption can apply where services are supplied through such an entity - appears from this that medical services supplied through a company would still be exempt - if they tax it as supply of staff then that treatment would have to apply to other entities - if a get a building firm to do a labour only extension to my house then are they supplying staff to me (23%) or labour to built the house 13.5%. My own view is that a company supplying medical services should come under the general vat exemption. Of course revenue could have a different view ! be interested in further views on this REvenue in their vat on medical services leaflet state -In some cases health care professionals supply their services through an incorporated entity. The ECJ (European Court of Justice) in the case of Kugler C -141/00 held that the exemption is not dependant on the legal form of the taxable person supplying the medical services so the exemption can apply where services are supplied through such an entity – appears from this that medical services supplied through a company would still be exempt – if they tax it as supply of staff then that treatment would have to apply to other entities – if a get a building firm to do a labour only extension to my house then
are they supplying staff to me (23%) or labour to built the house 13.5%. My own view is that a company supplying medical services should come under the general vat exemption. Of course revenue could have a different view ! be interested in further views on this

]]> By: Ann Cotter http://www.thevatpractice.ie/blog/vat-exemption-of-health-and-medical-supplies-a-tale-of-two-territories/comment-page-1/#comment-194 Ann Cotter Thu, 01 Mar 2012 10:38:05 +0000 http://www.thevatpractice.ie/?p=716#comment-194 My comment is set out above. Thanks Ann Cotter acotter@welchco.ie My comment is set out above.
Thanks
Ann Cotter
acotter@welchco.ie

]]> By: Ann Cotter http://www.thevatpractice.ie/blog/vat-exemption-of-health-and-medical-supplies-a-tale-of-two-territories/comment-page-1/#comment-193 Ann Cotter Thu, 01 Mar 2012 10:36:56 +0000 http://www.thevatpractice.ie/?p=716#comment-193 I agree this is open to challenge in Ireland. There are strict rules in the medical profession regarding professional indemnity insurance i.e. the medical professional only is covered (not the company) therefore this strengthens Revenue's case that the company is supplying staff and not medical services. I would like to hear further views on this. Your mailshot is very good. I agree this is open to challenge in Ireland. There are strict rules in the medical profession regarding professional indemnity insurance i.e. the medical professional only is covered (not the company) therefore this strengthens Revenue’s case that the company is supplying staff and not medical services. I would like to hear further views on this.

Your mailshot is very good.

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