Eligibility of Botox, injectable and nail fungal treatments for exemption

A medical procedure has to be intended to protect maintain or restore the health of the patient to qualify for VAT exemption. It must also be carried out by or under the supervision of a registered health professional (VATA 1994 Sch 9 gp 7 items 1 and 2).

The taxpayer operated a skin culture and aesthetic clinic offering a range of skin treatments including for acne and rosacea nail fungus skin peels and injectable treatments such as Botox. None of the trained operatives were registered health professionals for the purposes of items 1 and 2.

The taxpayer said claimed the injectables and nail fungus treatments qualified for the VAT exemption. This was because Botox was a medical procedure and treatments given to patients to enhance their self-confidence and make them feel ‘better about themselves’. For the nail fungal treatment it was accepted...