Weight Watchers (Ireland) has lost a High Court claim that it should be exempt from value added tax on the basis that the services provided by it are educational. The Revenue Commissioners had contended the company was not entitled to such an exemption.
Weight Watchers had contended its services were intended to educate people to modify their eating, shopping and cooking habits to reduce the likelihood of obesity and other problems.
Mr Justice Barry White yesterday ruled there was reasonable evidence before Circuit Court Judge Liam Devally on which that judge could conclude that Denross Ltd, trading as Weight Watchers (Ireland), was not entitled to be exempt from VAT because of the nature of the services it offered.
Mr Justice White stressed his function in the High Court proceedings was not to retry the issue of whether Weight Watchers was entitled to the motion sought but rather to determine whether it was open to the Circuit Court judge to take the position he had. Mr Justice White said there was such evidence.
The judge added he would put a stay on his decision and on an order for costs against Weight Watchers, in the event of an appeal.