Actegy Ltd v Revenue & Customs (VAT - ZERO-RATING : Drugs, medicines, aids for the handicapped) [2019] UKFTT 139 (TC) (26 February 2019)

Actegy Ltd v Revenue & Customs (VAT - ZERO-RATING : Drugs, medicines, aids for the handicapped) [2019] UKFTT 139 (TC) (26 February 2019)

The Tribunal found that the Revitive Medic and Arthritis-knee devices were designed specifically and solely for use by disabled persons, as evidenced primarily by the technical files and clinical research, despite marketing to a wider audience. The design intention was focused on alleviating symptoms of chronic conditions causing disability, satisfying the statutory requirement for zero-rating under Item 2(g).

Citation
[2019] UKFTT 139 (TC)
Parties
Appellant: Actegy Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
26 February 2019
Procedural Posture
VAT Zero Rating Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
VAT Zero Rating, Medical Devices, Equipment for Disabled Persons
Tax Law VAT Zero Rating Medical Devices Equipment for Disabled Persons

Case Brief

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Parties

Actegy Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Zero Rating Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the Revitive Medic and Revitive Arthritis-knee devices are 'designed solely for use by a disabled person' under Item 2(g) Group 12 Schedule 8 VATA 1994

Ratio Decidendi

The Tribunal found that the Revitive Medic and Arthritis-knee devices were designed specifically and solely for use by disabled persons, as evidenced primarily by the technical files and clinical research, despite marketing to a wider audience. The design intention was focused on alleviating symptoms of chronic conditions causing disability, satisfying the statutory requirement for zero-rating under Item 2(g).

Court Disposition

Appeal allowed

Orders

  • Assessments raised as a consequence of the decision that the Revitive Devices were not eligible to be zero rated are to be withdrawn.