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Align Technology Wins VAT Exemption Appeal: Aligners Classified as Dental Prostheses by Tribunal

  • The case involves the VAT liability of Invisalign clear aligners supplied by Align Technology Switzerland GmbH and Align Technology BV.
  • Aligners are removable orthodontic appliances used to correct misaligned teeth and improve bite functionality.
  • Align treated the aligners as exempt supplies of dental prostheses under the Value Added Tax Act 1994.
  • HMRC decided that the aligners were subject to VAT at the standard rate, leading Align to appeal.
  • The main issue was whether the aligners qualify as dental prostheses under the relevant VAT legislation.
  • The tribunal ruled that the aligners are dental prostheses for VAT purposes, allowing Align’s appeal.

Source: bailii.org


  • There is a growing trend towards purposive interpretation of statutes, moving away from overly literal interpretations that were previously common.
  • This shift has been described as a departure from what Lord Hoffmann referred to as the “dark ages of word magic.”
  • In the current tribunal decision, the purpose of the exemption was key to achieving a sensible outcome based on common sense.

Source Fabian Barth


 

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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