Virtual GP services could be subject to European Union (EU) VAT charges from January 2025 depending on how the practice is classed following rule changes in Brussels.
This is according to Sue Rathmell, VAT and indirect tax partner at MHA, who spoke to Health & Protection about the EU’s decision to introduce changes to the place of supply rules for business-to-consumer (B2C) virtual services in January 2025.
According to Rathmell, the scope of the coming change in place of supply rules from 2025 is potentially quite wide and until the EU rules out further supplies, it is certainly possible the provision of online private consultation services to individuals in the EU will be affected.
“If it is, then the place of supply will be where the patient resides,” Rathmell added.
Rathmell explained that in the UK, many services provided by doctors are exempt under either the medical exemption or the welfare exemption.
“UK VAT law is derived from the EU VAT Directive and therefore it is possible the services supplied by the doctor into the EU will be exempt from EU VAT, avoiding an obligation to register and account for VAT,” she continued.
“Should the upcoming changes affect consultation services provided by doctors to EU individuals, we would recommend seeking local EU advice to determine if their supplies are subject to VAT.”
