Get a Drip Limited v The Commissioners for HMRC
| Judge | MEMBER DUNCAN McBRIDE |
| Judgment Date | 01 May 2025 |
| Neutral Citation | [2025] UKFTT 500 (TC) |
| Year | 2025 |
| Court | First-tier Tribunal (Tax Chamber) |
| Counsel | Mr James Rivett Kc,Mr Emile Simpson,Mr Joseph Millington,For |
| Date | 01 May 2025 |
Neutral Citation: [2025] UKFTT 00500 (TC)
Case Number: TC09509
FIRST-TIER TRIBUNAL
TAX CHAMBER
Taylor House, London
Appeal reference: TC/2018/07628
VAT – whether supplies of intravenous vitamin drips and vitamin injections were within the
exemption for “medical care” in Item 1, Group 7, schedule 9 VATA 1994. Held that the
supplies contained in 11 representative samples were supplies of “medical care” and within
the exemption. Appeal Allowed.
Heard on: 2 – 8 July2024
Judgment date: 1 May 2025
Before
JUDGE VIMAL TILAKAPALA
MEMBER DUNCAN McBRIDE
Between
GET A DRIP LIMITED
Appellant
and
THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS
Respondents
Representation:
For the Appellant:Mr James Rivett KC and Mr Emile Simpson, counsel, instructed by
Azets
For the Respondents: Mr Joseph Millington, counsel, instructed by the General Counsel and
Solicitor to HM Revenue and Customs
DECISION
INTRODUCTION
1.This is an appeal against a decision of the Respondents (“HMRC”) of 14 May 2018 (the
“Decision”) as upheld in a review conclusion letter of 11 September 2018, that supplies made
by the Appellant, Get a Drip Ltd (“GAD”) in the VAT quarter ended 10/2017 were standard
rated for Value Added Tax (“VAT”) purposes.
2.The supplies in question consist of intravenous “vitamin drips” and injectable “booster
shots” (collectively, the “Supplies”).
3.GAD maintains that the Supplies are exempt from VAT as they fall within Item 1,
Group 7, Schedule 9 of the Value Added Tax Act 1994 (“VATA”) which exempts the supply
of services consisting of the provision of medical care by certain listed practitioners.
4.There were initially four issues for determination in this Appeal. These were:
(1)Issue 1 – whether the supplies in issue qualify for the exemption from VAT under
Schedule 9, Group 7, Item 1 of the VATA 1994.
(2)Issue 2 – whether, alternatively, the Supplies are zero rated.
(3)Issue 3 – whether, in any case, the Decision satisfies the “best judgment”
requirement.
(4)Issue 4 – in respect of the period from 24 July 2020 onwards (which was the date
on which GAD was registered with the Care Quality Commission – the “CQC”) its
supplies became exempt under Schedule 9, Group 7, Item 4 of VATA.
5.At the outset of the hearing Mr Millington objected to GAD raising the issue of zero
rating (Issue 2). This was on the basis that GAD had not indicated prior to the hearing that it
intended to do so. As a result, HMRC were unable to adequately prepare their case on zero
rating and so raising it at this stage would, in Mr Millington’s view, be prejudicial to HMRC.
6.Mr Millington explained that HMRC had on two separate occasions (23 April and 20
August 2020) asked GAD to clarify its grounds of appeal in order for HMRC to formulate an
amended statement of case. The answer to each query was, however, insufficiently clear for
HMRC to understand whether zero rating was to be a ground of appeal. The first time it
became apparent that it was to be a ground of appeal was, said Mr Millington, on GAD’s
circulation of its skeleton argument.
7.We agreed with Mr Millington that given those circumstances, allowing HMRC to raise
Issue 2 in this hearing could be prejudicial to HMRC. Taking into account the discretion
afforded to us under the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009,
and the overriding objective of those rules which is to enable cases to be dealt with fairly and
justly, we therefore refused permission for GAD to raise zero rating at this hearing.
8.During the course of the hearing Mr Rivett notified the Tribunal that GAD had decided
not to pursue Issue 3 (best judgment) and Issue 4 (exemption under Schedule 9, Group 7,
Item 4).
9.The only issue for determination in this Appeal is accordingly Issue 1 (exemption).
BACKGROUND
Procedural history
1
10.On or around 4 October 2017 GAD applied to register for VAT on the basis that its
Supplies were zero rated. This was on the basis that they were within Item 1, Group 12, Sch.
8 VATA – which zero rates supplies of goods designed or adapted for use in connection with
any medical or surgical treatment (with limited exceptions) where the goods are dispensed to
an individual for that individual’s personal use on the prescription of an appropriate
practitioner.
11.On 9 November 2017 GAD filed its first VAT return for the quarter ended 10/2017 on
the basis that the Supplies were zero rated. That return contained a claim to repayment and
was selected for verification around 28 November 2017.
12.On 7 December 2017 in response to questions from HMRC, Richard Chambers (“RC”)
the owner and founder of GAD, confirmed that its Supplies were zero rated, providing a
selection of random prescriptions in support of its position and explaining that each had been
signed by a registered prescribing nurse. The prescriptions were in the form of a list of the
substances provided and headed with the “package” that had been supplied – these included
“Detox Drip”, “The Full Works”, “Basic Hydration”. RC also provided, inter alia, a list of its
main expenditure.
13.On 11 December 2017 HMRC (Officer Peters) asked GAD for additional information
including as to what the prescriptions were “actually for”, whether there was a diagnostic
system to determine the appropriateness of the treatment for the patient, the documentation
provided by the nurse, the qualifications of the nurse, whether the drugs could be supplied
separately and whether people were referred or could just book directly.
14.In a letter dated 13 December 2017, before hearing back from GAD but after having
heard from the HMRC VAT consultant, Officer Peters contacted GAD. She informed GAD
that having reviewed its website, HMRC had concluded that the Supplies were neither zero
rated under Item 1, Group 8, Sched, 12 VATA nor exempt under Item 1, Group 7, Sch 9
VAT but were standard rated. On 14 December 2017 the Supplies were accordingly assessed
on the basis that they were standard rated.
15.On 15December 2017 RC replied to Officer Peters initial questions and on 22
December 2017 provided further, more detailed information including as to its website and
the nature of the physical conditions treated and products used. He also asked for further
explanation of the standard rating decision.
16.In a letter dated 24 January 2018 Officer Peters informed GAD that she had revised her
opinion “in light of further research and information” and now considered the Supplies to be
exempt. This was on thebasis that the primary aim of GAD’s customers wasto “seek
diagnoses and be provided with treatment to make them feel well, not the single supply of
medicines”.
17.On 31 January 2018 RC responded saying that he disagreed with the decision,
maintaining that in his view the Supplies were zero rated and setting out his arguments as to
why the conditions for zero rating were met.
18.On 19 February 2018 Officer Peters informed GAD that the matter was to be sent to
HMRC’s policy team.
19.On 22 March 2018 Officer Peters informed GAD that having consultedwith her
colleagues:
“On the evidence provided I believe that Get a Drip is making a single
supply with three constituent parts - Diagnostics, supply of ‘drugs’ and
administration of the product – all being closely linked. Each part does not
exist without the other, When the customer approaches the clinic I believe it
2
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