- The issue in the Vision Dispensing Limited case was whether services linked to the online sale of prescription contact lenses were exempt from VAT.
- Opticians provide exempt medical care (sight tests, measuring, fitting) and standard rated supply of goods (spectacles, contact lenses, accessories).
- An apportionment is required when a customer pays a single amount for both services and goods.
- VDL supplies services in connection with the online sale of contact lenses and the appeal was about whether those supplies are subject to VAT.
- The legislation provides exemption for medical care by registered or enrolled opticians.
- VDL is a UK company and part of the Vision Direct corporate group.
- VDL operates a warehouse facility in the UK and dispatches goods to customers.
- VDL is not paid a fee by Vision Direct BV, its income comes from customer fees.
- HMRC argues that there is little evidence of advice being provided by VDL and questions whether healthcare services are being supplied.
- HMRC states that VDL’s supplies do not meet regulatory requirements and cannot be described as professional clinical advice or therapeutic care.
- VDL argues that its dispensing services are superior to those on the High Street and provides examples of clinical advice.
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
