GSTS Pathology Services LLP v HMRC

In GSTS Pathology Services LLP v HMRC (TC03351 – 19 February 2014) the FTT held that supplies of pathology services (testing samples of body fluid tissue etc)  by GSTS to three NHS Trusts were exempt from VAT.

The FTT rejected GSTS’s submission that it did not provide medical care (for the purpose of the Sixth VAT Directive art 13) as its supplies did not have a ‘therapeutic purpose’. Referring to D v W (C-384/98) Unterpertinger (C-212/01) and d’Ambrumenil (C-307/01) the FTT explained that there was a distinction between services provided for the purpose of ‘protecting maintaining or restoring human health’ and services which had another purpose for instance informing a judicial decision. Although GSTS’s activities did not have the direct effect of protecting maintaining or restoring health they did meet the second purpose.

Furthermore the FTT referred to...