- The Upper Tribunal (UT) allowed Mark Glenn Ltd’s appeal against HMRC’s £165,000 VAT assessment on custom-made hairpieces.
- The UT found that severe hair loss in women can constitute a disability for VAT purposes, overturning the First-tier Tribunal’s (FTT) earlier decision.
- The UT held that fitting and maintaining custom-made wigs using the Kinsey system qualifies as adapting goods to suit a disabled person’s condition, making them zero-rated for VAT.
- The decision clarifies the definition of disability for VAT and may allow suppliers of hair replacement systems to zero-rate certain supplies and make retrospective VAT claims.
Source: saffery.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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