When a person attends a GP or goes under the knife, Vat isn’t usually payable on the doctor’s fees. The service is exempt from Vat. The same is the case with many transactions in the course of a life – from nappies (zero rated) to the services of undertakers (exempt). Vat rates and charging conditions are set out in EU as well as Irish law because Vat is fundamentally an EU tax – it is harmonised to help equalise the EU single market and because a sliver of Vat collected by each member state (about a third of a per…
It’s been Revenue’s view for many years that medical services charged by a doctors’ company to an entity other than the patient attract VAT at 23% rather than being exempt.