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VAT Exemption
on Mobility Scooters
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 for
disabled people or when they have equipment adapted so they
can use it.
Also, VAT is not charged on certain
services provided to disabled people, including building work
to adapt a disabled person’s
home and the hire of disability equipment like wheelchairs.
Goods and services on which you don't have to pay VAT are often
referred to as 'zero-rated' or 'eligible for VAT relief'. In
other words, the rate of VAT that is charged on them is zero.
The rules about VAT reliefs for disabled people are complex.
Not everything that is supplied to disabled people is zero-rated
for VAT.
Who is eligible for VAT relief
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
- have a condition that doctors treat as a chronic sickness
(like diabetes, for example) or
- are terminally ill
A person with a temporary injury like a broken leg would not
qualify, nor would a frail older person who was generally able-bodied.
A product or service must also be
supplied for the 'personal and domestic use' of a chronically
sick or 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
Products that are eligible for VAT relief
Some examples of products that are zero-rated for
VAT are:
- wheelchairs
- some medical and surgical appliances - like
artificial limbs, for example
- electrically or mechanically adjustable beds
- gadgets that make everyday tasks easier for
disabled people, like kettle tippers
- chair or stair lifts
- computer software or hardware designed specifically
for disabled people
- gadgets and devices that are designed specifically
to make everyday tasks easier for disabled people,
like kettle tippers
- vehicles that have been adapted for use by
a disabled person
Services that are eligible for VAT relief
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
Leasing a vehicle or wheelchair under the Motability
Scheme
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.
Adaptations to your home
The work involved in some adaptations
to disabled people’s
homes is eligible for VAT relief.
However, the rules about adaptations
to buildings and VAT are complex. You should always
ask whether the adaptation work to your home will be
eligible for VAT relief when you’re hiring a
builder or other tradesperson.
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 (which is usually hired from private companies)
and specialised equipment for people with specific
disabilities (which is often available from disability
organisations and charities).
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. You don’t have to pay VAT
and then reclaim it from the government – it
will be taken off the purchase price before you pay.
You can find an example of
the declaration form in the ‘VAT reliefs for disabled people’ notice
on the HM Revenue & Customs website.
You can find out more about
VAT reliefs for disabled people on the HM Revenue & Customs
website. If you can't find the answer to your questions
there, you can call their National Advice Service.
Telephone: 0845 010 9000
Textphone: 0845 000 2000
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