Opportunity for Non-VAT Registered Ambulance Providers

If you provide patient transport services and are not VAT registered because you have treated your services as exempt from VAT, you may be entitled to register for VAT and reclaim VAT incurred on your business purchases and expenses going back up to 4 years.

HMRC have always viewed patient transport services as exempt from VAT but a provider of such services, E-Zec Medical Ltd, recently won a VAT Tribunal case. They argued that their services are zero-rated supplies of passenger transport when the vehicles used for transporting patients would seat 10 or more passengers if the vehicles had not been converted to accommodate wheelchairs and/or stretchers.

Why it's important to check your VAT status

This is important because although VAT cannot be reclaimed in connection with exempt services, it can be reclaimed if the services provided are zero-rated.

You may be entitled to register for VAT and have your VAT registration back-dated for 4 years if the vehicles used to transport patients would be capable of carrying 10 or more passengers if they were not modified for wheelchairs and or stretchers.

Speak to the Shorts VAT team for advice

The Shorts VAT team recently worked with a provider of private patient transport services under these circumstances, and we recommend getting in touch with our team if you run a similar business. Our team combines decades of experience working with complex VAT issues, and is happy to offer companies a free VAT return review.

Get in touch with our team today to learn more.