Skip to main content
Normal View

VAT Exemptions

Dáil Éireann Debate, Tuesday - 12 February 2019

Tuesday, 12 February 2019

Questions (177)

Brendan Griffin

Question:

177. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied) regarding medical supplies exemption; and if he will make a statement on the matter. [6738/19]

View answer

Written answers

The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, Irish legislation provides for an exemption from VAT for professional medical care services recognised as such by the Department of Health and Children.

Those medical care services are generally supplied by health professionals who are enrolled, registered, regulated, or designated on the appropriate statutory register provided for under the relevant legislation in force in the State or equivalent legislation applicable in other countries. Medical care services may also be supplied by a doctor to a patient through an incorporated entity. In general, such services, which normally consist of the diagnosing, treating or alleviating an ailment, are exempt from VAT.

However, some services offered by providers in the medical services sector are not exempt. For example, where a service provider has contracted with another person to be available to treat patients, the provision of this service is subject to VAT at the standard rate. The Revenue Commissioners regards this service as constituting a supply of the service of the provision of staff, which is subject to VAT at the standard rate, currently 23%.

The Revenue Commissioners has commenced a project to review the tax affairs of medical locums who have incorporated a business and are employed by Personal Service Companies (PSCs) or Managed Service Companies (MSCs). The review to date has focussed on the tax affairs of a number of such companies, and their directors, where the main source of income is a contract for the provision of medical services through an intermediary and where, in most cases, the directors are the only employees of the company. A number of tax compliance interventions have commenced in respect of companies and directors operating in the medical locum sector, and further interventions will be initiated in the weeks and months ahead. In September 2018, Revenue notified both the Irish Hospital Consultants Association and the Irish Medical Organisation of this compliance project.

I cannot comment on the example provided by the Deputy as there is not enough information to determine the nature of the supply for VAT purposes.

Top
Share