- Advanced Hair Technology Ltd faced a VAT dispute with HMRC over hair transplant services.
- HMRC argued these services were standard rated for VAT, not exempt as medical care.
- The First-tier Tribunal agreed with HMRC, ruling the procedures were cosmetic.
- HMRC dropped the penalty for failure to register for VAT due to incorrect advice.
- The decision aligns with previous cases, emphasizing cosmetic procedures are generally standard rated.
- Businesses must prove treatments are genuinely medical to claim VAT exemption.
- Advanced Hair Technology has appealed to the Upper Tribunal, with a hearing expected in 2026.
Source: xeinadin.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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