VAT and the Cosmetic Surgery Industry

Many businesses that provide procedures, including Botox, dermal fillers, hair transplants and other similar procedures, believe that the services they provide are exempt from VAT as they are being provided for medical purposes. However, HM Revenue & Customs (HMRC) will regard the procedures that are primarily for aesthetic purposes as a VATable supply at the standard rate (20%).

A business can only regard its services as an exempt supply for VAT purposes when the services are within the profession in which the person providing the services is registered to practice (or they can supervise a non-medically qualified person). The primary purpose of the service must also be the protection, maintenance or restoration of the health of the patient.

We understand that this is an industry where HMRC is actively looking to review the business's income streams to ascertain whether they should be registered for VAT. Therefore, if you or any of your clients provide cosmetic treatments, we recommend that you contact our free VAT helpline by calling 0330 8284 206 to discuss your VAT status. Alternatively, fill out our online contact form and we will be in touch at your convenience.