VAT – VAT registration – supply of medical care or supply of staff – direction and control – supply of medical care – exempt – no requirement for registration – appeal allowed”
This case is important in giving guidance on how to analyse supplies. It concerned whether the Appellant provided taxable supplies of medical staff to the health board responsible for the medical care of prisoners at HMP Kilmarnock, as the tax authority (HMRC) submitted, or VAT-exempt supplies of medical care, as the Appellant submitted. The First Tier Tribunal (FTT) found that the contract did not reflect the relationship in practice, because health care provision in a prison turned out to be significantly different from community health care. On the facts, the health board exercised no control over the Appellant, which decided how, when and whether medical care was to be provided to prisoners. So the Appellant was supplying VAT-exempt medical services, not merely staff, and the appeal was allowed (Archus Trading Ltd [2020] UKFTT 61 (TC))
Source: bailii.org
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