I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under Irish VAT legislation professional medical care services recognised as such by the Department of Health and Children are exempt from VAT.
Professional medical care services recognised by the Department of Health and Children are generally those medical care services 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. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses and Midwives Act 2011 and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.
Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Therefore, in accordance with the law, Revenue applies the VAT exemption to the supply of medical services by these professionals as and from the date of their registration. However, I understand that the register of Counsellors and Psychotherapists envisaged by that legislation has not yet opened. Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.
As with all TAC determinations they are not binding but only relate to the particular facts of each case and TAC Determination 32TACD2022 is only applicable to the specific details of that case. The Deputy may recall that the legislation has been recently amended to clarify the position that the supply of a service by Counsellors and Psychotherapists continues to be subject to the reduced rate of VAT.
