VCLOTHING7200 | Services - the hire of clothing and the private use of clothing: Processing

In VAT Notice 714 guidance is also given on what processes applied to young children’s clothing constitute a supply of zero-rated goods in their own right, as opposed to a supply of services. However, please bear in mind the decision in the Tribunal of Ali Baba Tex (LON/89/270), referred to in VCLOTHING2500, when considering this. A further example of a supply of services, which cannot therefore be zero-rated, is the repair of young children’s footwear. This contrasts with the adaptation of young children’s footwear for orthopaedic purposes that may be zero-rated as the production of new goods, unless the adaptation is a non-attached part such as an insole.