NHS: VAT
(asked on 15th June 2015) - View Source
Question to the HM Treasury:
To ask Her Majesty’s Government what arrangements are in place to compensate the National Health Service for irrecoverable VAT.
This question was answered on 29th June 2015
NHS bodies are compensated for irrecoverable VAT in two ways. Firstly as a part of the upfront public funding for healthcare, and secondly through a special scheme in section 41(3) of the Value Added Tax Act 1994 that refunds VAT on certain contracted out services.