Revenue published an eBrief clarifying the VAT treatment of consideration for the supply of home care services where the service is supplied by a provider acting as a principal and where staff are supplied by employment agencies to home care providers.

In the eBrief No. 57/13 it is noted that subject to certain conditions under the Health Act 1970, services of home care providers qualify for VAT exemption under paragraph 2(2) of Schedule 1 VAT Consolidation Act 2010. It is also stated in the eBrief that if an employment agency is providing staff to home care providers or any other body, such supplies are liable to VAT at the standard rate of VAT.

According to the eBrief, Revenue have become aware of cases where the incorrect VAT treatment for home care service has been applied. Suppliers operating in this area who have claimed an exemption under paragraph 2(2) of Schedule 1 are advised to consider the criteria for exemption set out in the eBrief and contact their local Tax District if further guidance is sought.

eBrief No. 57/13 is available here of this issue of tax.point.