Dentists ask us this a lot: can dentists claim back VAT? The short answer is that most routine dental care is VAT exempt, so practices delivering only exempt services can’t claim input VAT on their costs. But many practices now offer a mix of exempt and taxable services, sell sundries or buy in items that are zero rated or standard rated. That mix is where selective VAT recovery becomes possible – and where good record-keeping and the right VAT method make a real difference.
In this blog we outline what counts as exempt dental care, where services and goods become taxable, when registration is required and how partial exemption works in practice. We also share common scenarios we see across mixed private/NHS and fully private practices, with pragmatic steps to tighten processes and improve cashflow. If you’d like tailored advice, our VAT services page explains how we support healthcare businesses day to day.
Quick answer to the big question
So, can dentists claim back VAT? Yes – but only where the practice makes taxable supplies (standard rated or zero rated) or meets the de minimis test under partial exemption. Dental care and treatment provided by registered dental professionals is exempt from VAT when the primary purpose is protecting, maintaining or restoring a patient’s oral health. Cosmetic work that forms part of a treatment plan aimed at oral health may also be exempt; purely aesthetic services are normally standard-rated (HMRC, VAT notice 701/57).
What counts as exempt dental care
Exempt services include examinations, fillings, extractions, endodontics, periodontal treatment and orthodontics where clinically indicated. Drugs and appliances (such as materials applied during treatment) supplied in the course of that exempt treatment are also exempt. Dental prostheses – such as crowns, bridges and dentures – are exempt when supplied by a dentist or dental technician for the dental benefit of a named patient. Separately sold sundries, such as toothbrushes, toothpaste and floss, are not exempt and are usually standard rated.
VAT registration and the 2025/26 thresholds
If your taxable turnover (excluding exempt supplies) exceeds £90,000 on a rolling 12-month basis, you must register for VAT. This registration threshold has applied since 1 April 2024 and remains current for the 2025/26 tax year (HMRC, 2024).
Remember, exempt income doesn’t count towards the threshold. That said, if you supply taxable cosmetic treatments, sell sundries, hire out surgery time with more than incidental non-medical elements, or run a shopfront/online store, taxable turnover can build quickly.
Prices are rising: Factor in costs when deciding to register
Dental services have seen persistent price growth. The Office for National Statistics (ONS) reports the Consumer Prices Index including housing costs (CPIH) annual inflation rate for dental services averaged 5.3% in 2024, and 5.6% year-on-year in Q2 2025. This adds pressure to materials and lab costs and makes reclaiming input VAT more valuable where you can legitimately do so (ONS, 2025).
Partial exemption: Reclaiming some VAT when you have mixed supplies
Many practices are “partly exempt” – they make both exempt supplies (clinical treatment) and taxable supplies (certain cosmetics, sundries, some room hire/teaching). In this case you must attribute input VAT to taxable, exempt and residual costs, then recover only the taxable portion. If your exempt input tax is small enough, the de minimis rules let you recover it anyway: on the standard rules, exempt input tax must average no more than £625 per month and be no more than 50% of total input tax for the period (HMRC, VAT notice 706).
Getting attribution right – for example, apportioning shared overheads like rent, energy, software and marketing – is essential. Practices with meaningful taxable activity should review whether the standard method reflects use, or whether a special method would be fairer.
When are goods zero rated or standard rated?
- Drugs and appliances supplied during treatment: These are usually exempt as part of the clinical supply.
- Dental prostheses for a named patient: These are exempt when supplied by dentists or dental technicians for the patient’s dental benefit (HMRC, internal manual).
- Separately sold items: Toothbrushes, toothpaste, floss, mouthwash and cosmetic whitening kits sold over the counter are normally standard-rated.
Common scenarios we see
- Cosmetic whitening outside a care plan – likely standard rated: Treat as taxable income and account for 20% output VAT.
- Associate arrangements and cost-sharing – often exempt: Charges between dentists for facilities/staff that are predominantly medical in nature can be exempt; review contracts and invoices (HMRC notice 701/57).
- Selling sundries at reception or online – standard-rated: Keep separate tills/stock keeping units (SKUs) to support split VAT reporting.
- Teaching and room hire – depends on substance: Pure room hire can be exempt from VAT on land if no option to tax is made. Bundled with non-incidental services, it may be taxable – check facts and contracts.
- Practice refurb and capital kit – residual input VAT: Apportion between taxable and exempt activity. Consider capital goods scheme for high-value items.
Records and practical steps that improve recovery
- Chart supplies: List each service and product, noting whether it is exempt, zero-rated or standard-rated, and why.
- Segregate turnover: Separate price look-up codes/SKUs for taxable items; issue VAT invoices where required.
- Tag invoices: Attribute directly to taxable or exempt streams where possible; keep residuals tight.
- Partial exemption method: Review quarterly and annually; if near the limits, consider a special method that better reflects use.
- Document prostheses: Ensure lab invoices and patient records show named-patient prosthesis supplies.
- Model VAT impact: If registering voluntarily, model price points and margin after output VAT – standard rate remains 20% for most taxable supplies.
For day-to-day support, see our Who we help webpage for our work with medical and dental professionals, or browse related guidance in our knowledge and blogs section.
What this means for your practice
So, can dentists claim back VAT? If you make only exempt supplies, no – and you can’t register just to recover VAT. But if you have any taxable income, from cosmetic work that sits outside a health treatment plan to retail sundries, voluntary or mandatory registration may allow you to claim back VAT on costs related to those taxable activities. From there, partial exemption rules can unlock some recovery on shared overheads, provided you stay within the de minimis limits or use a fair, approved method.
The right approach is practical and evidence-based. Start by listing every supply you make and how you price it. Check whether you are approaching, or have exceeded, the £90,000 threshold in taxable turnover. Sense-check your invoices and point-of-sale set-up so you can clearly separate standard-rated sales. Review your partial exemption calculation and test the de minimis position each period, with an annual review that reconciles back to your actual year. If your taxable activity is growing – for example, a rising volume of aesthetic services or an expanding online shop – revisit your VAT method and consider whether a special method would produce a fairer result.
If you’d like a hands-on review, we can map your supplies, test your partial exemption position and, where appropriate, prepare a voluntary registration case with forecasts. Talk to us – we’ll answer the question, “Can dentists claim back VAT?” for your specific mix of services and build a method that stands up to scrutiny. Contact us to get started.
