Share to Twitter Share to Linkedin As the COVID-19 pandemic recedes many medical testing services businesses have been diversifying and bringing to market new products aimed at the growing health and wellbeing market. For example, blood and DNA testing and screening services. The VAT status of these new offerings is not always clear and recent VAT case-law, and commentary issued by HMRC, leaves some grey areas for interpretation, with risks for tax compliance. One of the considerations when innovating and developing new products is the question of whether or not the contemplated supplies fall under the VAT exemption for medical care. As with all exceptions to standard rating, the medical care exemption is applied narrowly and has a series of conditions that all have to be met. There is also a ‘cliff-edge’ in the impact between having to account for VAT (at the standard rate of 20% in the UK) and exempt treatment; the possible addition of 20% VAT either makes … [Read more...] about Medical Testing Services – Tax Considerations Of New Activities