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A care home enquired whether it could itemise medical services within its single invoice to apply the VAT exemption. The DGT ruled that while residential care services are taxed at 4% or 10%, healthcare services provided on demand and separately from residential care are exempt.
Care home operators can potentially reduce their VAT burden by separating healthcare services from residential care, provided they are distinct and not merely ancillary.
The tax team reviews your specific situation.
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