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Are supplies VAT-exempt for a practitioner of alternative therapies

Q: I am a modern day therapist and provide one to one services for clients assisting them in cultivating and maintaining their well-being. This involves me providing advice as to meditation techniques and other strategies to reduce stress and improve my client’s mental health. I have medical training but am not a member of any health professional body. Can I exempt my supplies under the health exemption?

A: Although your services are provided in the course of restoring or maintaining the health of your clients, and are potentially of a type that could fall within a particular medical profession, as you are not a “registered health professional” (for example under the Health Professions Order 2001 ) you cannot exempt your supplies under Group 7, Schedule 9 of the VAT Act 1994. Any supplies you make as a therapist in this way will be subject to the standard rate of VAT. This is covered under paras 2.1 and 2.2 of Notice 701/57.