Spectrum Community Health CIC v The Commissioners for HMRC
Decision date: 1 August 2022
Neutral citation: [2022] UKFTT 237 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Spectrum supplied integrated primary healthcare services in 13 prisons to NHS England under single NHS Standard Contracts. The Tribunal held each contract constituted a single composite supply of medical care, exempt under Article 132(1)(c)/Item 1 Group 7 Schedule 9 VATA, and rejected Spectrum's claim that parts (dispensing drugs, contraceptives) were separate taxable supplies. Spectrum's appeal was dismissed.
Ratio decidendi
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AI confidence in this ratio decidendi summary: high
Where a contractual package is sold as an integrated healthcare service to a single purchaser for a single, non‑itemised price and the constituent elements are necessary to achieve the common aim, the transaction can be a single composite supply for VAT purposes; such a supply of medical care by registered medical/paramedical professionals falls within Article 132(1)(c)/Item 1 Group 7 Schedule 9 VATA and is exempt.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
Sub‑contracting elements of an integrated service does not automatically prevent the lead provider's supply to the commissioner being a single composite supply. Regulation by the CQC or operation as a community interest company does not necessarily make the provider a "duly recognised establishment" or institution of a similar nature under Article 132(1)(b)/Item 4.