VAT on counselling

[E Storey]

Is VAT charged on counselling?

What if it's classed as a medical treatment?

 

[E Storey]

Nevermind - I got hubbie to tell me the answer:

VATWELF4050 - Spiritual Welfare: Which supplies of spiritual welfare are exempt from VAT?

Spiritual welfare is a meeting of persons for the purpose of providing spiritual succour. The following are examples:

• retreats - leading a group in the exploration of their spiritual needs and development;
• spiritual counselling - a course of talking therapy on a one to one basis about spirituality;
• discussions, debating and sharing thoughts on spirituality;
• meditation, prayer or worship.

This list is not exhaustive. But you should be able to recognise from the nature of the supplies whether they fall within the categories listed above. When determining if the supply fits within these categories, you should adopt a common sense and ordinary approach within the spirit of the relief.

 

[spidersong]

I'm a bit confused when did you jump from counselling to spiritual welfare.

Spiritual welfare is only exempt when supplied in the following manner "The supply, otherwise than for profit, of goods and services incidental to the provision of spiritual welfare by a religious community to a resident member of that community in return for a subscription or other consideration paid as a condition of membership."

So is this not being supplied direct by a counsellor as may be assumed from your original query but by a religious organisation that charges some sort of subscription, in which case your original query gave almost none of the useful detail. Also your query seems to indicate there's a chance of this being medically based, unless we're dealing with faith healers then I can't see spiritual counselling being anywhere near a medical procedure.

Generally (other than as above) counselling would only be exmept when supplied by a charity, a public body, or a state regulated welfare institution, or when supplied by "a person enrolled in ...the register of medical practitioners or the register of medical practitioners with limited registration"

 

[E Storey]

Thanks for that!

I'm not 100% sure what type of counselling is being offered tbh, and I just wanted to get a bit of an idea before I go and see this new client. He has not mentioned VAT but I may need to advise him to see a Tax advisor on this.

 

[elaine@cheapaccounting]

Counselling can cover a multitude of things.

Is the client on / approaching the vat threshold?

What type of counselling?

Consider a flat rate scheme?