Revenue have revised their position on the VAT treatment of Opticians Fees following the 2006 Finance Act changes.

Per eBrief No. 37/2007, which is reproduced at Section 2.05, Revenue has revised its views on the interpretation of VATA72 s1 1(3), and now accepts that where a dispensing service is supplied with spectacles or contact lenses, that supply by an optician constitutes two supplies forming a ‘multiple supply’ consisting of:

1. A taxable supply of goods,
2. An exempt supply of professional services of an optical nature referred to as ‘dispensing services’.

They had earlier contended that this was a composite supply. Revenue note that their revised interpretation may give rise to refunds.