Revenue & Customs Brief 43/09
VAT: Psychologists’ services
With effect from 1 July 2009 practitioner psychologists are regulated by the Health Professionals Council meaning that any supplies of medical care they make became exempt from VAT from that date. Practitioner psychologists come under seven domains: clinical, counselling, educational, forensic, health, occupational, and sport/exercise. Psychologists who work purely in academic research and experimental psychology and who do not offer services to the general public are excluded from regulation meaning that there will be no change in the VAT treatment of their services.
By 'medical care' we mean any service relating to the protection, maintenance or restoration of the health of the person concerned, including mental health. Medical care would include services such as counselling, working with children with emotional problems, dealing with criminals’ behavioural problems or running stress management courses.
However, as is the case for all health professionals, the VAT exemption excludes services that are not primarily for the benefit of the patient, for example, assessing a patient's mental condition for legal reasons at the behest of a third party. This is because the primary purpose of such services is to enable a court to take a decision on whether the patient is fit to stand trial rather than any immediate concern about the patient’s mental health.
Issued 22 July 2009
