TC09640 - [2025] UKFTT 01114 (TC)

Article 132(1)(c) Principal VAT Directive exempts from VAT “the provision of medical care in the exercise of the medical and paramedical professions as defined by the Member State concerned”.

Section 31 VATA exempts the supply of goods and services which are specified in Schedule 9. Relevant to this appeal, Group 7 of Schedule 9 specifies that the following services shall be exempt:

Note 2 to Group 7 provides, inter alia, that paragraph (a) of Item 1 includes supplies of services made by a person who is not registered in the register of medical practitioners where the services are wholly performed by a person who is so registered.

What are now Item 5 and Note 2 were substantively enacted under the provisions of the Order with effect from 2 April 1979. The explanatory note (EN) to the order provided:

“The Order extends also the exemption under Group 7 of the Exemption Schedule to include the provision of a deputising service for doctors, and in addition exempts the supply of medical services by persons whose names appear in the statutory register and rolls referred to in the group where such professional services are supplied through a third-party – usually a limited company employing the persons concerned.”

In addition to the EN, an Explanatory Memorandum was prepared at the request of the Select Committee on Statutory Instruments. It stated:

“… new item 5, deals with supplies by organisations providing “deputising services”. A general practitioner is responsible for his patients at all times and these organisations arrange for a doctor’s telephone calls to be answered when he is not available and for the deputy to be provided when necessary. It is desired that such provision of “deputising services” to a doctor should be exempt and the new item 5 exempts such supply.”