SUPPORTED BY:
The No.1 payroll and employment advisory support service for users of direct payments.
Learn more....
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.
How VAT reliefs work
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.
Why can’t everything supplied to disabled persons be relieved from VAT?
When VAT was introduced into the UK it was agreed that disabled persons should not have to incur the tax when buying items designed solely for their use or when having equipment adapted so they would be able to use it. This basic principle still stands and as a consequence zero-rating does not extend to all goods and services supplied to disabled persons. Moreover, the UK has agreed not to extend its existing zero-rates.
What goods can be relieved from VAT when supplied to disabled people?
The following goods may qualify for relief:
Certain conditions must be adhered to in order for these supplies to qualify for zero-rating. These conditions include; the design or adaptation of the item, the supply being made to a disabled person for their domestic or personal use and the receipt of an eligibility declaration form.
See the following 2 notices for more specific details and further information (from the HM Revenue and Customs website)
notice 1 (Notice 701/7 VAT reliefs for disabled people)
notice 2 (Notice 701/59 Motor vehicles for disabled people)
What services can be relieved from VAT when supplied to disabled people?
The following services may qualify for relief:
Again, certain conditions must be adhered to in order for these services to qualify for relief.
See the following 2 notices for more specific details and further information (from the HM Revenue and Customs website)
notice 1 (Notice 701/7 VAT reliefs for disabled people)
notice 2 (Notice 701/59 Motor vehicles for disabled people)
What if I hire or lease goods?
The leasing or hiring of certain items, for example wheelchairs and motor vehicles leased under the Motability scheme, may be zero-rated subject to the conditions outlined in Notice 701/7 VAT reliefs for disabled people (See Notice 1 above)
Download options
This document is available in the following formats from the HM Revenue and Customs website.
National Advice Service
If you can't find an answer to your questions here, you can contact the National Advice Service.
The Advice Line is open 8am to 8pm Monday to Friday for all general questions relating to the former HM Customs and Excise only.
So if you have a question about Customs, Excise, VAT or any of our other taxes or duties, please feel free to call us on 0845 010 9000 (+44 208 929 0152 outside UK).
FAQ: VAT for disabled people (Acrobat PDF, 24KB)