In HMRC v DPAS Limited [2018] (C-5/17), the Court of Justice for the European Union (CJEU), found that administration fees charged to patients in relation to dental plans were not exempt.

The supply of dental services by registered dentists is an exempt supply. Transactions which are dealing in money are also exempt.

This case was around whether branded dental plans provided by DPAS involved exempt services by DPAS to patients.

  • Patients made monthly payments to DPAS.
  • DPAS deducted its management fees from the sums received.
  • The balance was then paid over to insurance companies and dentists.
  • The payments entitled the patients to a certain level of dental services.

The First-Tier Tribunal (FTT) had decided that the financial transaction exemption applied as the services were concerned with payments or transfers of money.

This decision was appealed by HMRC to the Upper Tribunal who then referred to the CJEU.

The CJEU decided that the services provided by DPAS were essential to enabling payments to be made from the patients to the insurance providers and dentists, but this of itself was not enough to make the services exempt transactions of dealing in money.

The services to the patients were effectively administration charges.

The CJEU concluded that the decision in Bookit Ltd v HMRC (C-607/14)¸ where it was found that card handling fees were not exempt, was comparable to this case. The services provided by DPAS were not exempt.


Payment / transfer services exemption

External link: HMRC v DPAS Limited [2018] (C-5/17)