A tax -tier tribunal recently ruled that most hair transplants were purely cosmetic and therefore not exempt from VAT.
In a case brought by HMRC against Farjo Hair Institute in London for unpaid VAT arising due to hair transplants on patients. The clinic argued that its treatments for androgenetic alopecia should be exempt from from VAT because they amounted to medical care. They stated that it helped to restore health of the patient by protecting the skin from photo damage, minor trauma, thermal insult and improving patients psychological wellbeing.
However, the judges stated that the procedures had not been medical and did not qualify for a VAT exemption. They also noted that as hair transplants are rarely permanent, they cannot be viewed as a medical cure for the purpose of VAT exemption. However they also stated that some hair transplants may qualify for VAT exemption and should be considered on a case -by-case basis.
Prices of hair transplants without VAT start from £3000 and go up to £15,000, depending on the surface area being treated. On average a course of treatment costs around £7000.