- The First-tier Tribunal (FTT) ruled on the VAT treatment of a system used for hair loss called the Kinsey System
- The issue was whether the Kinsey System qualifies for zero-rating under Schedule 8 Group 12 to VATA94
- Advice from VAT experts suggested that zero-rating could be available using legislation for aids to the handicapped
- HMRC opened an enquiry in 2020 and confirmed that hairweaving cannot be zero-rated for VAT purposes
- The Appellant argued that the services provided were adapting goods to suit the condition of disabled persons
- HMRC upheld their decision that the hair loss system does not qualify for zero-rating
Source: ey.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.
