VAT on Aesthetic Services

by | May 18, 2022 | Accounting

VAT Rates for Aesthetic Services

Aesthetics are a popular service these days and many different types are popping up on our high streets. If you are in the business of aesthetic beauty, then you may be wondering what the VAT rates are for your services. VAT is a tax when buying goods or services. It is found on many different products from make-up to chocolate. To be sure of VAT rates, the best thing to do is speak to an accountant to make sure it is correct for your business. However, here is our handy guide to give you an idea.

Just Aesthetic Expertise

If you are offering a range of aesthetic services such as soft tissue fillers or Botox for facial lines, then this is quite clear cut. The rate of VAT is the standard rate of 20%. It is the same for all similar non-medical procedures. This is chargeable on all these types of treatments and is a cost you pass on to your customer. Be aware that if your business turns over £85,000 of sales in a 12-month period then you will need to become VAT registered. You can also choose to register for VAT before this threshold if it is best for your business. As a specialist accountant for medical services, we can advise you on this.

Combined Medical and Aesthetics

If your business is one that combines medical and aesthetic services, then the situation is slightly different. All of the medical treatments have a 0% VAT rate. So, if you are a dentist surgery then all of the medical procedures you offer are at a 0% rate. This includes things like teeth whitening, if medically needed, which can only legally be carried out by dentists. Therefore, be aware that if aesthetic treatments happen alongside dental or medical treatments, these will still have a 20% VAT rate. A clinic with both types of services would therefore need to make sure each kind of treatment had the correct rate of VAT applied. As a specialist accountant in this area, we can help advise you to ensure compliance with regulations.

Things to Watch Out For

There are a limited number of treatments thought to be purely aesthetic that could be medical too. For example, Botox has a use in improving migraines. It can also have uses for hyperhidrosis or excessive sweating to reduce symptoms. In such specific cases, this treatment is medical and therefore has a 0% tax rate. There are other similar ones to note, and your accountant will be able to inform you of the status of each individual treatment. These are important to be aware of if VAT registered.

 

So generally, aesthetic treatments carry a rate of 20% VAT like many goods and services across the UK. However, there are some cases where exemptions may apply. Do ask your accountant about your own individual treatments to find the rates you need to charge. They can also advise whether and when to register for VAT. Getting it right at the beginning can save future worries and a surprising bill that might come along later.

Please do contact us if you have any queries about the information in this blog post or questions relating to aesthetic services. Our expert accountants are ready to advise and support you.

 

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