Align Technology VAT Ruling: Implications for Dental Practices and Orthodontic Appliance Suppliers

• Dental practices supplying orthodontic appliances should be aware of a recent VAT case.
• HMRC previously considered aligners subject to 20 percent VAT, not exempt as dental prosthetics.
• Align Technology Switzerland argued aligners should be VAT-exempt as dental prosthetics.
• The First Tier Tribunal ruled aligners qualify as dental prostheses and should be VAT-exempt.
• The tribunal’s decision is based on the ordinary meaning and purpose of VAT law.
• The decision is binding only on the parties involved; HMRC may appeal.
• Dental professionals should continue charging 20 percent VAT on aligners for now.
• Protective claims for overpaid VAT should be submitted to HMRC for the past 4 years.
• Top-up claims for future VAT charges should be submitted pending the final case outcome.

Source: mha.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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