The company traded as The Farjo Hair Institute at premises in Manchester and London and considered that its supplies of hair transplants to treat sufferers of androgenetic alopecia were exempt from VAT as a medical service carried out by a registered practitioner (VATA 1994 Sch 9 Group 7 Items 1 and 4).
HMRC disputed the VAT liability saying the services were standard rated as cosmetic treatment ie to improve the physical appearance of the patient rather than cure a medical condition.
A service can only be exempt if its primary purpose is to protect maintain or restore the health of a patient. In the event of Item 1 not being appropriate the company’s advisers claimed that Item 4 could also apply on the basis that ‘care or medical or surgical treatment’ is also exempt.
HMRC first contacted the company in June 2018 and...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
