Doctors to charge VAT in light of EU judgment

DOCTORS will for the first time have to charge VAT on certain medical services following two European Court of Justice landmark judgments.

Insurance companies seeking a medical report before deciding the level of premium a client must pay are facing a 21% VAT top-up fee. Employers who request a medical report to enable them decide on the recruitment of a potential employee will also be charged an extra 21%.

Ernst & Young’s head of indirect tax, Jim Somers said insurance companies faced with the hike in fees were likely to pass on the extra charge to the consumer.