Revenue & Customs Brief 14/2020 announces a new policy on how opticians and dispensers of hearing aids account for VAT on their supplies.
Opticians and dispensers of hearing aids make two supplies to their customers for VAT purposes: the spectacles, lenses or hearing aids themselves which are taxable at the standard rate, and a supply of dispensing services which is exempt from VAT.
To account for VAT on the taxable element of their sales, opticians and hearing aid dispensers may either agree an apportionment with their customers (disclosing separate charges for each supply at the time of sale), or charge a single price to the customer, using a bespoke method agreed with HMRC.
From 1 October 2020:
businesses will be required only to hold a till slip or similar evidence to demonstrate that they are making two separate charges to the customer at the time of supply (and that this information is being conveyed to the customer); and
those using a method of apportionment will no longer have to seek prior approval from HMRC, bringing opticians and dispensers of hearing aids into line with other businesses that apportion VAT on their sales.
Revenue & Customs Brief 14/2020 announces a new policy on how opticians and dispensers of hearing aids account for VAT on their supplies.
Opticians and dispensers of hearing aids make two supplies to their customers for VAT purposes: the spectacles, lenses or hearing aids themselves which are taxable at the standard rate, and a supply of dispensing services which is exempt from VAT.
To account for VAT on the taxable element of their sales, opticians and hearing aid dispensers may either agree an apportionment with their customers (disclosing separate charges for each supply at the time of sale), or charge a single price to the customer, using a bespoke method agreed with HMRC.
From 1 October 2020:
businesses will be required only to hold a till slip or similar evidence to demonstrate that they are making two separate charges to the customer at the time of supply (and that this information is being conveyed to the customer); and
those using a method of apportionment will no longer have to seek prior approval from HMRC, bringing opticians and dispensers of hearing aids into line with other businesses that apportion VAT on their sales.
