Crown Eyeglass wins VAT tribunal

C&E had said that Anthony Land, a Crown Eyeglass franchisee, was not eligible for a VAT refund because dispensing was carried out by unqualified staff. Dispensing services are exempt from VAT only when carried out by a qualified practitioner or when unqualified staff are supervised by a registered optometrist or dispensing optician. The appeal was led by Andy Ditchfield, VAT manager for accountancy group Arthur Andersen, who proved that there was direct supervision. 'The tribunal declared that Crown Eyeglass franchisees were 'meticulously trained operatives who only needed the lightest of supervision and received it',' he said. Mr Ditchfield, himself a former C&E officer, added that the ruling would allow other UK practitioners, with similar supervisory processes to those used by Crown Eyeglass, to claim VAT refunds. C&E officers met earlier this year to discuss the problems of VAT apportionment on spectacle dispensing (optician, News, March 6). Following this, C&E said it could not provide a uniform policy because of the practicalities involved. C&E policy advisor John Maloney described some areas as a 'legal mess' and asked for patience from practitioners. Since January 1 this year, practitioners have been required to negotiate their own dispensing apportionment agreements with C&E. Shaun King, of accountancy group Ernst and Young and VAT adviser to the Federation of Ophthalmic and Dispensing Opticians, said continued effort was required to resolve difficulties and achieve uniformity. A further meeting was due to be held with C&E next month and progress needed to be made, he said.