Align Technology’s Invisalign VAT Exemption Claim Rejected, UK Court Rules Clear Aligners Not Dental Prostheses

Source: GOV.UK

DENTALGOODNEWS·News | On July 7, 2026, local time, the Upper Tribunal, Tax and Chancery Chamber of the UK ruled on the VAT dispute between HM Revenue and Customs (HMRC) and Align Technology: Invisalign clear aligners do not fall within the exemption scope for "dental prostheses" under Group 7, Items 2 and 2A of Schedule 9 of the UK Value Added Tax Act 1994, and thus are not eligible for VAT exemption. The relevant supplies are subject to VAT at the standard rate, and the First-tier Tribunal's ruling in favor of Align Technology was overturned.

The core issue of this case is whether Invisalign aligners can be classified under the "dental prostheses" exemption as specified in Group 7, Items 2 and 2A of Schedule 9 of the UK Value Added Tax Act 1994. Align Technology had previously treated the relevant supplies as exempt, while HMRC determined that the standard VAT rate should apply and issued a corresponding decision, leading to the dispute. In May 2025, the First-tier Tribunal ruled in favor of Align Technology, holding that "dental prostheses" could, in a professional context, extend to orthodontic devices. HMRC appealed on grounds of legal interpretation.

The Upper Tribunal overturned the First-tier Tribunal's decision. The panel determined that the term "prosthesis" generally refers to an artificial device that replaces a missing or functionally impaired body part. As a removable orthodontic device, the Invisalign aligner functions to move a patient's natural teeth and does not replace missing or damaged teeth. Therefore, it does not fall within the "dental prostheses" exemption scope in this case.

In the conclusion of the ruling, the court stated that the "dental prostheses" exemption refers to artificial devices that replace missing or damaged teeth and does not include the aligners in question. The court also rejected Align Technology's argument for an expanded interpretation based on dental professional dictionaries, as well as its claim for a broader interpretation based on the purpose of the exemption. It is reported that the respondents in this case are Align Technology Switzerland GmbH and Align Technology BV.

Ultimately, the Upper Tribunal, Tax and Chancery Chamber overturned the First-tier Tribunal's ruling and issued a substitute decision: dismissing Align Technology's appeal and confirming that the supply of Invisalign aligners in this case is subject to VAT at the standard rate.

According to previous reports by DGN, the European Commission officially launched an antitrust investigation into Align Technology on June 30, 2026, focusing on its potential bundling of Invisalign aligners with iTero intraoral scanners in the European Economic Area, as well as its restrictions on the interoperability of Invisalign with third-party intraoral scanners.