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VAT considerations for Dentists – Cosmetic Treatment

The business aspects of dental practice have greatly evolved in recent years. Changes include:

  • Dentists’ contracts
  • Growing business requirements
  • Patients’ expectations exerting an increasing influence on all aspects of the dental industry.

Cosmetic Dentistry:

As cosmetic dental work is on the rise in Britain; it is no surprise that many private practices are taking advantage of the growing market, developing their business. However, in the cosmetic market there are some VAT considerations that you, as a dental practice, need to be aware of.

Where cosmetic services are performed as part of a supply of dental treatment (BDA has advised that it is rare for dental work to be carried out purely for cosmetic reasons), then there is a single supply of exempt healthcare. Contrastingly, where cosmetic dentistry is performed outside of any healthcare, it is standard rated.

Interpretation plays a large part in whether a procedure is viewed as purely cosmetic or health related. What is clear is that the UK law provides for the supply of the following, by registered dentists and auxiliaries, to be exempt:

  • Health services where the principle purpose is to protect, maintain or restore the health of the person concerned and;
  • Dental prosthetics

All dental work is deemed to be medical care, but will not be exempt unless it can be demonstrated that the intension is to maintain or restore heath. This means that the health professional needs to determine with an accountant’s or tax advisor’s support whether they consider that the requirements for exemption have been met.

If you would like a trusted accountant with a specialism of dentistry to support your practice, please contact:

Ad Valorem, your preferred leading firm of Chartered Certified Accountants in Milton Keynes, Harpenden, Northampton and Luton who, alongside a team of business advisors, serve the rest of the Buckinghamshire, Northamptonshire and South East region.

Ad Valorem Accountancy Services

01908 219100

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Posted in: Blog, Growth & Mentoring, VAT