- The First-tier Tribunal (FTT) ruled that Advanced Hair Technology Ltd’s (AHT) treatments for hair loss, primarily focused on Androgenetic Alopecia (AGA), do not qualify for VAT exemption under UK law or the EU VAT Directive, as AGA is not considered a medical condition but rather a symptom.
- The tribunal clarified that “medical care” for VAT exemption purposes is limited to services aimed at diagnosing, treating, or curing diseases, and concluded that while AGA is classified as a disease, AHT’s services are not curative but rather cosmetic in nature.
- AHT’s argument that their treatments serve a therapeutic purpose related to psychological issues was dismissed due to a lack of evidence from qualified practitioners supporting any psychological conditions in their patients, reinforcing the tribunal’s view that the treatments provided were primarily cosmetic.
To access the decision, click here.
Source KPMG
