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Accounting simplified for opticians and hearing aid sellers

28 September 2020
Issue: 4762 / Categories: News

Opticians that dispense spectacles or contact lenses to their customers make two supplies for VAT purposes: the spectacles or lenses – which are taxable at the standard rate – and a supply of dispensing services which is exempt. Similarly dispensers of hearing aids make a taxable supply of hearing aids and an exempt supply of dispensing services.

To account for VAT on the taxable element of their sales opticians and hearing aid dispensers may either:

  • use separately disclosed charges for each supply notifying each separate charge to the customer at the time of sale; or
  • charge a single price to the customer and make a fair and reasonable apportionment of the income between the taxable and exempt elements of the supply using a method of their...

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