Guide To VAT Relief
What is Vat Relief?
Some of the products from our online catalogue can be purchased with zero rate VAT.
This is because the UK government provides some special rules that we can apply when certain conditions are met.
These conditions are:
- You declare that you, or the person you are purchasing the products on behalf of, are chronically sick or disabled
- The products that you are purchasing are eligible to be supplied with zero rate VAT
- The products that you are purchasing are being supplied to you, or the person you are purchasing the products on behalf of, for domestic or personal use only
You can get more information about VAT relief from HM Revenue & Customs.
What is the definition of "Disability" in the context of VAT?
VAT law provides certain reliefs for people who are “chronically sick or disabled”.
According to the gov.uk website, a person is ‘chronically sick or disabled’ if they are a person with a:
- physical or mental impairment which has a long-term and substantial adverse effect on their ability to carry out everyday activities
- condition which the medical profession treats as a chronic sickness, such as diabetes
It does not include an elderly person who is not disabled or chronically sick or any person who’s only temporarily disabled or incapacitated, such as with a broken limb.
If a parent, spouse or guardian acts on behalf of a ‘chronically sick or disabled’ person, your supply is treated as being made to that ‘chronically sick or disabled’ person.
A written declaration is required from a customer to confirm that the customer is entitled to VAT relief. The information on this declaration must demonstrate that the customer fulfils all the criteria for eligibility for zero rate VAT.
What Goods and Services can be bought at the Zero Rate VAT?
What goods can be relieved from VAT when supplied to disabled people?
The following goods may qualify for relief:
- Adapted motor vehicles
- Some equipment and appliances, designed solely for disabled persons.
- Specialist adjustable beds, chair lifts, hoists, lifts and sanitary devices
- Some medical and surgical appliances
- Emergency alarm call systems
- Mobility scooters
- Other equipment and appliances designed solely for use by disabled people
What services can be relieved from VAT when supplied to disabled people?
The following services may qualify for relief:
- Installing zero rated equipment for an eligible customer
- Adaptation of goods so that those goods suit the condition of the disabled person
- Supply to a disabled person of repair and maintenance services for eligible goods
- Certain building works
Certain conditions must be adhered to, in order for the supply of goods and services to qualify for zero rate VAT.
These conditions include the supply being made to a disabled person for their domestic or personal use and the receipt of an eligibility declaration form.
Our sister website, Mobility Solutions, also supplies many of the equipment and appliances that can be exempt from vat.
Getting an Adapted Vehicle at Zero Rate VAT
In order for a vehicle to be bought at zero rate VAT, it must:
- Be a motor vehicle such as a car, light van, or multi-passenger vehicle (MPV)
- Be designed, or substantially and permanently adapted to enable a qualifying person to travel in it
- Have an adaptation that is necessary to enable the qualifying person to travel in it
- Have a carrying capacity of no more than 12 people (including the driver)
This means that all of the vehicles at Allied Vehicles are available at zero rate VAT.