Cosmetic Surgery To Have VAT Added On In UK

After new VAT guidelines were introduced the cost of cosmetic surgery will rise by 20% in the United Kingdom. Surgeons who carry out plastic surgery purely for cosmetic reasons will need to register for VAT (Value Added Tax) and add that amount onto the patient’s bill.

VAT is similar to the US Sales Tax.

According to HMRC (HM Revenue and Customs), this is not a new law, but rather a clarification regarding existing laws, and that relevant trade professionals have received the new guidance.

Those in the cosmetics industry, who are calling this “The boob tax”, say this move should mean an additional £500 million ($780 million) in government revenue. The UK government, like many others in Europe, is forever seeking out ways of reducing its deficit.

To date, VAT has been added only onto Botox injections, chemical peels and other minor treatments performed in beauty salons.

A breast enhancement operation will rise by approximately £1,000 ($1,600).

If the cosmetic procedure is for therapeutic reasons, the VAT can be exempt, UK authorities said.

UK authorities wrote:

“. . . cosmetic services which are performed mainly for beautification or rejuvenation purposes, or done out of the individual’s free choice rather than out of medical necessity, are liable to VAT at the standard rate. Such services may include: face lifts, tummy tucks, female breast enlargement, liposuction, hair and tattoo removal using lasers and intense pulse light source machines.”

The guidance adds that people will not be eligible for exemption from VAT if the sole aim of the surgery is to make the individual feel better about themselves.

British Association of Aesthetic Plastic Surgeons (BAAPS) president, Fazel Fatah, said:

“The subjective proposals being put forward by HMRC will potentially harm large numbers of patients. They imply that, by definition, any procedure that corrects appearance rather than function is not a medical need. There has been no meaningful discussion with the professional bodies involved.

We can only hope that common ground can be found that protects the wellbeing of patients while balancing the obvious need to increase tax revenues. With surgery, we are dealing with human lives.”

UK plastic surgeons are already commenting on the difficulty, in some cases, in determining whether a plastic surgical procedure can be classed as therapeutic. If a woman’s breasts are not symmetrical, at what severity of asymmetry would they be exempt from VAT? What about the correction of prominent ears? In the UK the National Health Service (NHS) covers the cost for children so that they won’t be bullied or teased at school.