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Provision of care or medical or surgical treatment

The provision of care or medical or surgical treatment and, in connection with it, the supply of any goods provided in a hospital or other state-regulated institution is exempt from VAT (VATA 1994, Sch 9, Group 7, Item 4). For further discussion this exemption, including the meaning of 'care', 'hospital' and 'state-regulated', see V4.146.

The provision of care, treatment and medical goods to patients by NHS hospitals is a statutory function and therefore normally regarded as a non-business activity (see 'Status of NHS trusts/foundation trusts' below). However, with the extension of the exemption to all state-regulated private institutions, the exemption is more comprehensive and it is likely that there will be only very limited circumstances where care is standard rated.

Accommodation

The exemption in VATA 1994, Sch 9, Group 7, Item 4 can extend to include accommodation and meals in some circumstances. The extent to which meals, accommodation and other goods and services connected to