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

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• 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

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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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