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Supply of care as distinct from supply of staff

It should be noted that the exemption under VATA 1994, Sch 9, Group 7, Items 1–4 (and 5, in the view of the Tribunal – see 'VATA 1994, Sch 9, Group 7, Item 5 (deputies)' below) relates to the supply of care and associated goods, but not to the supply of medical staff (although there is a concession in relation to the supply of nursing staff – see under that head below). Thus the question may arise as to the nature of what is being supplied.

In City Fresh¹, two dentists, acting in partnership (CDP), set up a company (City Fresh) through which they supplied their services to CDP. CDP then supplied the services on to an NHS Trust. HMRC argued that the arrangement meant that City Fresh was making taxable supplies of staff, rather than supplies of exempt dental services, on the grounds that the dentists came under the control of CDP. The Tribunal held, however, that although there