INTRODUCTION
1. The decision under appeal is the review conclusion letter dated 21 June 2018 from HMRC to the Appellant upholding the decision to compulsorily register the Appellant for VAT.
2. The matter in dispute is whether the supplies by the Appellant to Ayrshire and Arran Health Board (“the Board”) constitute “the provision of medical care” and are thus exempt from VAT in terms of Item 1 Group 7 Schedule 9 Value Added Tax Act 1994 (“VATA”) or whether the Appellant supplies staff to the Board which would be a supply liable to VAT and thus requiring registration.
3. I heard evidence from Dr Henderson who was formerly one of the shareholders and directors of the Appellant. He was also one of the general medical practitioners (“GPs”) who provided medical care at HMP Kilmarnock. I also heard evidence from Ms C Ruth McMurdo who, since May 2016, has been the Senior Manager Justice Healthcare Services at HMP Kilmarnock. Both were wholly credible witnesses.
Decision
80. The supplies made by the Appellant consist of the provision of medical care by suitably qualified medical practitioners. Therefore, those supplies fall within the exemption from VAT and the Appellant has no requirement to register for VAT.
81. The appeal is allowed.
Source: FTT
