VAT Relief for Disabled People

VAT is a tax that you pay as a consumer when you buy goods and services in the European Union (EU), including the United Kingdom.

In the UK the standard rate for VAT is 17.5 per cent.

Disabled people don't have to pay VAT when they buy equipment that has been designed solely for disabled people or on the adaptation of equipment so they can use it.

Also, VAT is not charged on certain services provided to disabled people, including some building work to adapt a disabled person's home and the hire of disability equipment like wheelchairs.

 

 

The product or service must be supplied for the 'personal or domestic use' of the disabled person to qualify for zero-rating. Things not covered by this include:

* products and services used for business purposes
* products made widely available for a group of people to use
* products and services supplied to people who are staying or living in a hospital or nursing home, as part of their medical or surgical treatment or with any form of care

 

Who can get it

VAT law states that you must be 'chronically sick or disabled' to qualify for VAT relief.

A person is 'chronically sick or disabled' if they:

* have a physical or mental impairment that has a long-term and severe effect on their ability to carry out everyday activities (section1 DDA)
* have a condition that doctors treat as a chronic sickness (like diabetes, for example) or
* are terminally ill

Zero Rated Products and services

products that are zero-rated for disabled people:

* wheelchairs
* some medical and surgical appliances - like artificial limbs, for example
* electrically or mechanically adjustable beds
* chair or stair lifts
* computer software or hardware designed specifically for disabled people
* gadgets and devices that are designed solely to make everyday tasks easier for disabled people, like kettle tippers
* vehicles that have been adapted for use by a disabled wheelchair or stretcher user

Services that are eligible for zero-rating include:

* the servicing, maintenance and installation of disability equipment
* adaptation work on equipment or appliances so a disabled person can use them
* some building alterations to a disabled person's home
* the hire of qualifying disability equipment

 

VAT & Motor Vehicles

If you are a wheelchair user, you should not have to pay VAT when you buy a motor vehicle that has been adapted for your personal use.

Any adaptation work that is done on a standard vehicle to make it suitable for a disabled person is also eligible for zero-rating. But you will still have to pay VAT on the purchase of the unadapted vehicle.

 

Motability is a charity that provides vehicles and powered wheelchairs to disabled people. You don't have to pay VAT when you lease a vehicle or wheelchair under the Motability Scheme.

VAT & Hiring disability equipment

You don't have to pay VAT when you hire qualifying disability equipment. This applies to large equipment, like powered wheelchairs and hoists and specialised equipment for people with specific impairments.

How VAT relief works

Before you pay for any product or service, check that it qualifies for zero-rating and that the supplier is registered for VAT.

When you buy a zero-rated product or service, you may have to sign a form declaring that you have a chronic illness or disability and what it is. You must also declare that the product or service is for your own 'personal or domestic use'. The supplier should have copies of this form.

You can then buy the product or service at a price that excludes VAT- it will be taken off the purchase price before you pay.

 

find out more

You can find out more about VAT relief for disabled people on the Government website>>
Or Telephone: 0845 010 9000