Let’s get this straight

There’s an interesting VAT dispute involving the Align group, who supply Invisalign clear aligners. Align historically
treated these as VAT-exempt considering them "dental prosthesis." HMRC challenged this as they believed Align did
not provide orthodontic services, which was crucial for the aligners to be eligible for the exemption, leading to VAT
assessments for Aug 2022 to May 2023.

Align began accounting for VAT on the supplies of aligners from Sep 2023 but also initiated proceedings to
challenge this, including a statutory review of the VAT assessments. Despite the review being upheld in HMRC's
favour, Align appealed to the First Tier Tribunal (FTT). This appeal was set for a hearing this month, but before it
could happen, HMRC withdrew the assessments, stating this was not a concession that the decisions were wrong in
law. This resulted in the FTT advising that the case would be struck out.

Align sought clarification from HMRC if this meant they accepted the treatment of the aligners as legally correct,
but HMRC maintained they had not made any legal concessions. Align then requested the FTT hearing to continue
to determine if HMRC, by withdrawing the assessment, had confirmed a decision on the aligners' VAT liability. The
FTT concluded that although the assessments had been withdrawn, the appeal should be heard to resolve the
issues of Align's liability moving forward.