In a decision released this week, HMRC has been successful in its appeal regarding the VAT status of “dental aligners”.
The case was brought by HMRC against Align Technology Switzerland AG (“Align”), following Align’s successful appeal to the First-tier Tribunal in early 2025.
The Upper Tax Tribunal concluded that the VAT exemption for the supply of “dental prostheses” must be interpreted strictly. It agreed with HMRC’s view that a prosthesis is an artificial item designed to replace a missing or damaged tooth, such as a crown, bridge or denture. The Tribunal found that the exemption does not extend to dental appliances, a category into which it considered aligners to fall.
While this decision does not alter the VAT exemption that applies to the provision of medical care by a suitably qualified healthcare professional (such as teeth alignment treatment), it will increase the cost to practices of providing these services, as irrecoverable VAT will continue to be incurred on the purchase of aligners and similar items.
As a decision of the Upper Tax Tribunal creates binding precedent, it will be interesting to see whether Align decides to take the matter further by appealing to the Court of Appeal.
If you have any questions about this decision or would like to understand the potential VAT implications for your practice, please contact a member of our specialist VAT or Dental teams.
