- A UK tribunal has ruled that VAT applies to many cosmetic skin treatments, despite an appeal by Illuminate Skin Clinics.
- The clinic argued that its services were eligible for the medical services VAT exemption, but the tribunal found that the treatments provided by the clinic were not exempt from VAT as they did not constitute ‘medical care’.
- The decision could have significant implications for other providers of cosmetic treatments, and HMRC is known to be actively targeting clinics for VAT inspections.
- To qualify for VAT exemption as “medical care”, the key is to establish that the services have a therapeutic aim of diagnosing, treating, or as far as possible curing diseases or health disorders.
Source RSM
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