Vaping VAT reclaims

Working with a number of companies to quantify their potential VAT overpayment...

STS acts for a number of clients in the vaping industry and we regularly find ourselves discussing whether vaping equipment and refills are eligible for VAT at a 5% rate rather than the standard 20%.

Vaping VAT reclaims

This argument effectively hangs on whether vaping supplies constitute smoking cessation products (a view held by many leading scientists) and whether they are ‘pharmaceutical’ in nature.

We recommend that retailers of vaping products seek to protect their position in the event that HMRC agrees with this analysis. It is likely that such a decision will only be reached after a lead case has been heard at a Tax Tribunal however.

STS are currently working with a number of vaping companies to quantify their potential VAT overpayment over the past four years. In each case, we liaise with HMRC to protect our clients’ position and, where necessary, have appealed to the First-tier Tax Tribunal (FTT) to seek an independent view on the VAT treatment having first sought the opinion of eminent tax counsel.

Should you wish to consider a claim, we are happy to act on a contingent fee basis. Please contact us for further information.

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