Nursing and Care Assistant Staffing Not VAT Exempt, Tribunal Rules Against 1st Alternative Medical Staffing

• 1st Alternative Medical Staffing Ltd lost its appeal against HMRC; its supply of nurses and care assistants is subject to standard rate VAT, not exempt.
• The tribunal held that VAT exemption applies only if the supply is made by a “state regulated institution” as defined in the legislation, which the company was not.
• The company’s services, though closely related to medical care, did not meet the exemption requirements because they were not supplied by a qualifying institution.
• The tribunal also noted that exempting such services for some providers but not others would distort the market and breach EU VAT rules.
• Appeal dismissed; supplies of nursing and care assistants by employment businesses remain taxable.

Source: claritaxnews.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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