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Hi,

I dont understand what goes on with podiatry and VAT. From my understanding pods are exempt from VAT which means we can not charge patients VAT and we can not claim VAT back when buying equipment and supplies.

Is this right or, as I suspect, am I missing something?


Any help on understang this issue would be appreciated.


Andy

 

That's basically it. Simply put, any service (supply) provided by a registered healthcare professional is exempt and therefore any input VAT incurred in making those supplies are not reclaimable.

HMRC have just issued updated guidance as it happens here's the link:

http://customs.hmrc.gov.uk/channels...ntent&propertyType=document&id=HMCE_CL_000121

Of course there is nothing to stop you registering which would put you in a partial exemption situation. This may or may not be advantageous, but you will not always know until after you've done it, may change over time if the business changes and it can't easily be revoked. Also the admin and record keeping are a nightmare so unless you know what you're doing my advice would be to leave it well alone.

Hope this helps
Ian

 

No VAT on professional fees here in the Republic of Ireland (yet). I'm not sure if this is the position in the rest of the EU? It appears that the EU is increasingly becoming dominated by Germany and France - the "Markozy Alliance", so its a matter of what they say will apply to the remaining member states. I don't personally want to be an unpaid revenue collector for the Government with the nightmarish associated bureaucracy - simple is always best.