VAT Exemption for Medical vs Cosmetic Treatments: Key Tribunal Guidance for Clinics and Practitioners

• The Upper Tribunal clarified that VAT exemption for medical care depends on the “principal purpose” of the treatment—whether it is primarily therapeutic or cosmetic.
• Cosmetic procedures can be exempt if their main purpose is to treat a disease or health disorder, but not if done mainly for aesthetic reasons.
• A multi-factorial analysis is required, considering diagnosis, procedure nature, symptoms, context, and perspectives of both client and practitioner.
• The Tribunal found the previous standard for evidence of diagnosis was too high and that a formal, detailed diagnosis is not always necessary.
• The case was sent back for reconsideration, and clinics are advised to carefully assess the principal purpose of their treatments.

Source: vita-uk.com

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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