Register for VAT or not?

I am health care professional registered with HCPC

Didn't find your answer?

Hi, 

I am an orthotist and started my own private practice and running that as a limited company. My practice see patients who may require medical devices to support their health worsening or improve quality of life or treat medical conditions. I understand some of the devices I supply are VAT exempt and some of them are not e.g. custom insoles

https://www.gov.uk/guidance/health-professionals-pharmaceutical-products...

I satisfy section 2.1 and section 2.3 

My business is not currently VAT registered and some of the devices I supply can be over thousand pounds and currently I pay VAT to buy them from manufacturer and have to increase the price for the patient. The manufacturer says to me that they have to charge VAT to me because I am not a patient and also I am not VAT registered.

My turnover has not reached the threashold and may take up to 2 years to get there but I am considering to register for VAT anyway so that I can provide the patient a cheaper price by either not paying VAT to start with or by claiming it back by doing VAT returns. 

Some of the devices I supply do not quality for VAT exemption so I understand I would charge VAT to those patients. I forecast that to be less than high end devices and I am assuming I would be able to also claim VAT on other business expenses e.g. room rent cost.

I have spoken to 3 different accountants and all of them says, it’s not worth the extra work you have to do to stay VAT compliant but I do not understand why that should be a reason for not registering if it saves you money and stay competitive with pricing.

I want to sign up with an accountant who understand medical profession and may be have dealt with something similar before and provide guidance. 

Thank you for reading.

Regards

Azhar

 

 

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.