The House asked whether the personal administration of a drug such as a vaccine by an NHS doctor to a patient is a taxable supply for the purposes of value added tax. The provision of medical care in the exercise of the medical and paramedical professions should be exempt from VAT, but the supply of goods is taxable (though zero rated). In rural areas doctors also filled the role of pharmacist. They sought to argue that the supplies of drugs in that context was taxable, and that they could therefore recover input taxes. The commissioners argued that there was a single exempt supply.
Held: The regulations only allowed doctors to dispense drugs which patients would administer themselves where the special rules applied. There was however no sufficient distinction to have the dispensing treated differently. Comissioners’ appeal allowed.
The classification of the transaction as a supply of services or of goods and services was a question of law.
Lord Nicholls of Birkenhead, Lord Steyn, Lord Hoffmann, Lord Scott of Foscote, Lord Walker of Gestingthorpe
[2004] UKHL 53, Times 26-Nov-2004, [2005] 1 WLR 86, [2005] STC 55
Bailii, House of Lords
Value Added Tax Act 1994
England and Wales
Citing:
Appeal from – Doctor Beynon and Partners v Commissioners of Customs and Excise CA 20-Dec-2002
The appellants were doctors practicing far from a pharmacy. They themselves administered rather than dispensed drugs direct to their clients under the regulation. They appealed a finding that the supplies were exempt supplies, asserting instead that . .
Cited – Card Protection Plan Ltd v Commissioners of Customs and Excise ECJ 25-Feb-1999
A company procuring insurance purchases for credit card protection was as exempt from VAT as was the insurer. A provision which restricted the ability to claim such exemption to those registered as insurers under national was invalid under European . .
Cited – Commissioners of Customs and Excise v British Telecommunications Plc HL 11-Feb-1999
The cost of the delivery of a quantity of new cars from the factory or depot to the purchaser is incidental and ancillary to the supply of the cars themselves, and the VAT on delivery charges was not reclaimable by the purchasing company as Input . .
Cited – Faaborg-Gelting Linien v Finanzamt Flensburg ECJ 2-May-1996
A non-takeaway restaurant is a supply of services, and a ferry supply was made from its place of business. The supply of prepared food and drink at a restaurant resulted from a whole series of services (including the preparation and service of the . .
Cited – Moyna v Secretary of State for Work and Pensions HL 31-Jul-2003
The appellant had applied for and been refused disability living allowance on the basis of being able to carry out certain cooking tasks.
Held: The purpose of the ‘cooking test’ is not to ascertain whether the applicant can survive, or enjoy a . .
Cited – Commissioners of Customs and Excise v Madgett and Baldwin (trading as Howden Court Hotel) ECJ 22-Oct-1998
The court considered the criteria for determining whether the provision to guests by a hotelier of travel services (and in particular transport to and from the hotel and excursions) constituted supply which was ancillary to the supply of . .
Cited by:
Cited – Doctor Beynon and Partners v Commissioners of Customs and Excise CA 20-Dec-2002
The appellants were doctors practicing far from a pharmacy. They themselves administered rather than dispensed drugs direct to their clients under the regulation. They appealed a finding that the supplies were exempt supplies, asserting instead that . .
Cited – College of Estate Management v Customs and Excise HL 20-Oct-2005
The college supplied educational services by distance learning. The commissioner sought to argue that printe daterials supplied with the course were ancillary and did not have the same exemption form VAT.
Held: The supplies did benefit from . .
Cited – HM Revenue and Customs v Weight Watchers (UK) Ltd ChD 21-Jan-2008
The court was asked whether the weight-watchers program which included attendance at a course and a supply of supporting materials was one single standard-rated supply or separate supplies of zero-rated printed materials and standard-rated support . .
Lists of cited by and citing cases may be incomplete.
Health Professions, VAT
Updated: 27 January 2022; Ref: scu.219869