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"..medicals undertaken for DVLA purposes to ensure initial or continued fitness to drive which are liable to VAT at the standard rate..." (from VAT Notice 701/57 Health Professionals January 2007)

The immediate impact of this is the possibility that non-registered opticians will break through the VAT threshold if they undertake this type of work, and that those who are already registered now have to charge and issue a proper VAT invoice for these services.

Having fought long and hard to exempt dispensing fees, you may see this as a stealthy way of the Revenue clawing back on what they lost.  It all depends on the purpose of the test as to whether VAT must be charged.

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