In the UK, VAT is currently set at 17.5% and consumers pay it on goods and services that they buy.

A few things are VAT exempt, like children’s clothes and mobility products when purchased for a person with a disability.

VAT relief and disabled people.

Disabled people don’t pay VAT on equipment that has been designed solely for disabled people.
The product is described as being ‘zero rated’.

This doesn’t mean that anyone can be exempt from paying VAT if they buy a product that is designed for disabled people. For example if a fully able bodied person buys a walking stick for themselves – they need to pay VAT. However if a person who is ‘chronically sick or disabled’ buys the same walking stick, they can qualify for VAT relief, and not pay the 17.5% on the item.

Who qualifies for VAT relief?
The law says that there are 3 ways to be eligible for VAT relief:

• You have a long term mental or physical impairment that hinders you in carrying out everyday activities.
• You have a condition that doctors treat as a chronic illness. For example, this could be diabetes or Multiple Sclerosis.
• You are terminally ill

Using the same example of a walking stick, if you have broken your leg, and want to buy a stick to help you, you would not qualify. This is because your situation is temporary and not long term.

What products are ‘zero rated’?
The product has to be supplied to a ‘chronically sick or disabled’ person and be for personal or domestic use.
The product could be:

• A wheelchair,
• An adjustable bed,
• A stair lift,
• Computer software that is designed specifically for disabled people.
• Gadgets and devices that are designed solely to make everyday tasks easier for disabled people. These are usually called mobility aids  or mobility equipment.
• Vehicles that have been permanently adapted for use by a wheelchair user.

Services provided to disabled people can also be included. For example; adaptations to buildings. However, the rules can be complicated, so it is best to take advice on whether the work is eligible for VAT relief before commencing any work. Also included in this category would be the servicing, maintenance and installation of disability equipment, or it’s adaptation so a disabled person can use it.

When buying a piece of Mobility Equipment or service, either online or in a shop, you need to complete a declaration before the zero rated product can have VAT relief applied. This generally means you need to supply your name, address and whether the item is for you or you are purchasing it for an eligible person. You also need to declare the reason that you (or the person you are buying the item for) are chronically sick or disabled.

Author: Jane