Cosmetic Treatments and VAT
The VAT on medical aesthetics treatments are again being discussed, will HMRC deem that treatments such as botox, dermal fillers and skin peels as cosmetic treatments not medical.
How would VAT effect the medical aesthetics clinics and the treatments provided?
Answer: Competively with prices or reduce profitability either can seriously hinder any start up clinic which requires financial investment to develop.
What options do medical aesthetics clinics have if VAT registered ?
VAT is currently 20% a cosmetic clinic or medical aesthetics practice would have to pay the HMRC 20% of all sales.
The clinic will need to either increase the cosmetic treatment prices which can be a competitive disadvantage or to incurr the VAT and lose 20% off your gross margins.
You will also be required to submit a VAT return and pay the HMRC every quarter, extra accounting fees may also be required.
Not all bad news.
You can claim back 20% on any VAT you pay on services or products for your clinics. This will reduce the amount paid to HMRC and dependant on how many VAT registered suppliers and services your clinic uses.
You will need a VAT receipt to claim any VAT back from HMRC.
If you are a medical aesthetics practitioner and would like information regarding advanced cosmetic courses for doctors, dentists and nurses including advanced botox training and dermal fillers master class courses.
Call: 01793 323786
The VAT on medical aesthetics treatments are again being discussed, will HMRC deem that treatments such as botox, dermal fillers and skin peels as cosmetic treatments not medical.
How would VAT effect the medical aesthetics clinics and the treatments provided?
Answer: Competively with prices or reduce profitability either can seriously hinder any start up clinic which requires financial investment to develop.
What options do medical aesthetics clinics have if VAT registered ?
VAT is currently 20% a cosmetic clinic or medical aesthetics practice would have to pay the HMRC 20% of all sales.
The clinic will need to either increase the cosmetic treatment prices which can be a competitive disadvantage or to incurr the VAT and lose 20% off your gross margins.
You will also be required to submit a VAT return and pay the HMRC every quarter, extra accounting fees may also be required.
Not all bad news.
You can claim back 20% on any VAT you pay on services or products for your clinics. This will reduce the amount paid to HMRC and dependant on how many VAT registered suppliers and services your clinic uses.
You will need a VAT receipt to claim any VAT back from HMRC.
If you are a medical aesthetics practitioner and would like information regarding advanced cosmetic courses for doctors, dentists and nurses including advanced botox training and dermal fillers master class courses.
Call: 01793 323786
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