Dispute over VAT zero-rating for hair augmentation services for women with significant hair loss

• The director of the appellant company created the ‘Kinsey System’ for hair augmentation and wig adaptation for women with significant hair loss
• HMRC disagreed that the supply of wigs and services fell under zero-rating for VAT
• The First-tier Tribunal (FTT) determined that the Kinsey System did not qualify as a service adapting goods for disabled persons
• Significant hair loss in women was not considered a disability in itself
• The FTT dismissed the appeal and upheld HMRC’s assessments and notices of amendment

Source: rpc.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.

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