Page 71 - Focus Group

Is it a composite charge or each service is priced for the room rent. This would fall under rental of
separately? premises and not healthcare.
- A patient with burns is treated in two stages – - If the diagnostic tests are outsourced – is the
preventive and cosmetic diagnostic center directly charging the patient
or is there a business arrangement between the
Where does preventive end and cosmetic start?
health service provider and the labs. Again this
Is it integral to the wellbeing and preventive in would be treated as a business arrangement.
nature?
- For grey areas while carrying out a treatment,
What if the cosmetic surgeon came from another who is making the decisions, and is there a policy
hospital? of review ad approvals to ensure consistency.

What about the room charge due to the extend The above are a few guidelines which makes the
stay? engagement a bit complex and as professionals we
need to understand the business model and ensure
What if there is a time gap between the two that they are compliant. Ideally, it is always good to
procedures? break up each part of the business transaction and

While providing our services regarding VAT, whether look at them independently as only the provision of
it is advisory or compliance, it is important that as preventive health care for the wellbeing.
the experts we follow the following steps diligently. Let’s not make the mistake of just assuming that
- Check to see the tax codes that are applied to health care services are all zero rated.
the treatment types to ensure only the preventive
basic health care treatments for the wellbeing
are being treated as zero rated and the rest our
standard rated.
- The relationships the doctors have with the
service provider – employee, visiting specialist
and the reimbursement and sharing of the fees.
These should not be zero rated

-The treatment rooms and their usage, for
example, are the visiting doctors paying a charge CA Sanjay Khetrapal

Disclaimer:
This article and/or write ups and/or any of its content shall not be treated as opinion and/or advice in any circumstances of the author(s) and/ or the Chapter. Reader’s to apply their best
judgement in the best interest of their requirement and should seek a formal opinion on any issue.

The Institute of Chartered Accountants of India (Dubai) Chapter NPIO TAX JOURNAL 2020 71