Should VAT on vet fees be dropped?

RE: Should VAT on vet fees be dropped?

Sal the 1st — Sat, 07 Feb 2015 15:19:14 GMT

thanks - this is what I was driving at

RE: Should VAT on vet fees be dropped?

r-more — Sat, 07 Feb 2015 13:27:20 GMT

[quote user="Sal the 1st"]I suppose this could work if the wholesalers also dropped their VAT but somehow I cannot see that one happening.[/quote]

Changes to VAT legislation usually affects an entire sector, so veterinary products wouldn’t just be free of VAT when they are sold by a practice, but also when they are sold my any other party.

VAT on supplies shouldn’t be an issue, if the practice is VAT registered they claim back the VAT on purchases, so it isn't a cost to the practice. Depending on how the change is made, this could become an issue. In order for VAT to be dropped on veterinary services there are two options; make vet services exempt (very few things are actually exempt in reality, but medical services are) or reduce the rate of VAT to zero (most things we don’t pay VAT on are in this category, e.g. children’s clothes).

If vet services become exempt, practices won’t be eligible to register for VAT, which means they won’t be able to reclaim VAT on its purchases. This might not seem like a problem if veterinary products also become exempt or zero rated (which would be likely as VAT rules usually apply to an entire sector), but what about all the non-veterinary products and service practices purchase – everything from cleaning materials, to uniforms, utilities to commercial rent, repairs and equipment? These would still carry VAT which could not be reclaimed

If vet services are zero rated, the practice wont’s charge VAT on its services but would still be able to register for VAT and so claim back any VAT on its purchases. Of course this would probably mean that supplies would be zero rated anyway.

Further complication could arise if you take human medicine as an example; some things are zero rated and some are exempt. Putting asides the complicated admin, this would mean practices could reclaim VAT on some purchases but not others. In short, a drop of VAT on vet services may not bring about the price change people think it will.

RE: Should VAT on vet fees be dropped?

Clare Ball — Fri, 06 Feb 2015 17:25:23 GMT

He lost me at pets are a human right and not a luxury. I'm sorry but this is just untrue if you can't afford to keep a pet then do not get one.

I agree that sometimes vet fees could be more reasonable as sometimes people call us for quotes and compared to ours what they have been quoted has been astronomical. Maybe they could do something about the vast difference in costs of practices that are literally next door to each other.

RE: Should VAT on vet fees be dropped?

Sal the 1st — Fri, 06 Feb 2015 11:31:41 GMT

[quote user="Arlo Guthrie"]But I do think there is an argument for reduced VAT on vet bills for pensioners.[/quote]

for some pensioners yes I would agree - but not a blanket reduction for all. There are some extremely wealthy pensioners out there! I have worked in a practice where we used to do 'pensioner specials' because we thought it was helping a vulnerable group to keep their companion animals as healthy as possible. End result it was widely abused and unsustainable for us,other family members got Nanna to bring in their dogs cats and others on their behalf - and yes they did often look the epitome of sweetness and we really thought we were doing something good( think Shreddies knitting nannas and you get the picture) but underneath that sweet, butter wouldn't melt exterior sometimes lurked the brain of a criminal mastermind - they cost us big bucks. So yes reduced VAT or zero VAT for those that are genuinely in need (but then the charities are already doing this)

RE: Should VAT on vet fees be dropped?

Arlo Guthrie — Fri, 06 Feb 2015 09:03:10 GMT

[quote user="Sal the 1st"]how exactly would that work?[/quote]

Well, the Treasury would just reduce or remove the VAT!

I've just read the blog, and I must say, I'm with you on this one Sal. I think it'll just translate into another pack of fags for many!

But I do think there is an argument for reduced VAT on vet bills for pensioners.

RE: Should VAT on vet fees be dropped?

Sal the 1st — Thu, 05 Feb 2015 22:26:07 GMT

how exactly would that work? not sure about it encouraging people to seek veterinary care earlier or enabling more people to take up pet insurance - people spend to their means from my experience (and some beyond) and that might mean for some that the extra money goes on another packet of fags or a pint down the boozer not on better healthcare for their pets. There are people who put their animals first but these are not a majority group

I suppose this could work if the wholesalers also dropped their VAT but somehow I cannot see that one happening.

I am sorry but I do not see pet ownership as a human right. Some humans are barely capable of caring for themselves let alone an animal. I do believe in responsible pet ownership.