UK tax court rules hair loss transplants are not VAT exempt medical treatments
First-Tier Tribunal rules hair transplants for androgenetic alopecia are subject to VAT at the 20% standard rate, and may not benefit from the medical treatment exemption.
The Tribunal reviewed ten use cases, and found that male pattern hair loss is a common phenonium, experienced by over 80% of men and therefore part of the normal aging process. However, hair transplants following radiotherapy or trauma-related hair loss may still qualify as VAT-exempt medical care.
The case, Advanced Hair Technology Limited v The Commissioners for HMRC, was an appeal to A decision dated 6 June 2018, in which HMRC decided that the majority of AHT’s supplies of hair transplant services were standard rated for VAT. The VAT under appeal is £2,498,232.
