The dispute concerns whether the taxpayer’s supply of the Kinsey system, which provides services to adapt goods (wigs) to suit the condition of clients suffering from significant hair loss, is zero rated under VATA 1994 Schedule 8 Group 12 as ‘Drugs, medicines, aids for the disabled, etc.’. The taxpayer argued that significant hair loss in women should be considered a disability in itself, but the decision refers to HMRC guidance that ‘chronically sick or disabled’ does not include an elderly person who is not disabled or chronically sick or any person who’s only temporarily disabled or incapacitated.
Source KPMG
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