It is a common misconception that VAT registration will make it mandatory to add VAT on top of the sales prices which will result in an increased prices for customers.  In reality even after VAT registration more than 97 % of the sales still remains outside the scope of VAT in case of a medical company. This means that you do not have to charge VAT on top of your sales prices for 98 % of the services you provide hence remaining competitive. Only 2 percent of the sales attract VAT which the business can absorb without passing the same to the customers.