- 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.
