VAT adviser claims victory in Scots case

Alan Rashleigh, VAT adviser to the Association of British Dispensing Opticians, said that the case, which involves Specdeals Opticians, has seen Customs & Excise concede that suppliers of optical appliances which are paid for with an NHS voucher have the value of spectacles and the professional fee pre-determined. 'There are two major consequences,' said Mr Rashleigh. 'It now becomes very difficult for Customs & Excise to insist on any mark-up or profit being applied to spectacles supplied and paid for with an NHS voucher.' He said that under the EU principle of neutrality, Customs & Excise would not be able to insist on a mark-up applied to spectacles and contact lenses supplied to non-NHS patients. 'Secondly, as part of the taxable values of sales that can now be determined by reference to the NHS voucher, it becomes impossible and unnecessary to use any form of cost apportionment as advocated by Customs & Excise.' Mr Rashleigh also claimed the Edinburgh case revealed Customs & Excise had accepted that the value of spectacles had been determined by reference to the average cost of the frame, lens, glazing and case, with no mark-up. 'The Specdeals case has been interesting because it posed a series of questions at the tribunal which have not been before any tribunal or court,' said Mr Rashleigh. 'They go to the core of the European Court of Justice judgement in 1988, the Leightons and Eye-Tech High Court judgements, and the subsequent agreement reached by the industry with Customs & Excise.' A Customs & Excise spokesman said there was no change of direction on its current policy regarding VAT and optics in view of the case. He said that interested parties should wait until a verdict was reached. A judgement is expected shortly.