I have just taken on a new client (my first by myself Yay!!) who owns three dental practices. I understand being part of the medical profession they are exempt from VAT except for sales of things like toothbrushes, dental floss etc. For VAT registration do they look at the overall sales or just those that are VATable. They are unlikely to earn over £77,000 for these kind of sales but would HMRC count the exempt stuff as part of their sales and therefore they would have to register. Or do they only have to earn over £77,000 on the toothbrush sales side of it to be expected to register?
Only taxable supplies are included in the £77k total ie zero rated and standard rated supplies.
Not checked to see if dental services is zero rated or exempt but if exempt then will not be included in the taxable supplies total to determine if above £77k turnover or not.
