TaxCorporate TaxAxa wins dental tax battle

Axa wins dental tax battle

Denplan wins case in the High court over payment services for dentists

Axa UK have won a VAT case before the High Court over the treatment of fees
paid for dental plans.

Axa runs a plan for dentists whereby patients pay a monthly fee for their
dental services and use their dentist where necessary.

The High
Court has ruled
that the fees received by Axa for the plan should be treated
as VAT-exempt, since they are related to financial services rather than to the
supply of dentistry.

The taxman argued that Denplan’s purpose was to ‘provide a seamless
administration service’ to design dental products and market them.

The judge rejected that argument, saying that ‘the most important service
offered by Denplan is the provision and operation of payment plans, which is a
service of an essentially financial nature.’

Financial services are exempt from VAT, whereas dental work is not.

Denplan charges the dentist a fee amounting on average to 71p for each
monthly payment.

A tribunal had earlier insisted that the payments should be split into
financial services portions and other suppplies, a view upheld by the High Court
after Axa had cross-appealed that point.

Further Reading:

Read the
judgment

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson