UK VAT exemption rules are notoriously complicated…so here is our one page summary:
A: Goods are either exempt or not exempt:
Contrary to popular opinion, not all good used by disabled people are exempt from VAT under this scheme. The goods qualify for exemption if they are designed solely for use by a disabled person and are appropriate to that person’s disability.
So, many products which we sell are not eligible for this Disability VAT relief, particularly most of the tyres used by racing chairs and handcycles, and general engineering parts such as bearings. Some other sites are selling these illegally. It is not sufficient for zero-rating that the equipment is merely destined or intended for use by a disabled person, or is mainly or commonly purchased by disabled persons. It is, unfortunately, our legal responsibility under the VAT Act 1994 to make this distinction.
All prices on our site are listed with and without VAT. The VAT exemption status is given below the price of all items within the shop.
All non-exempt products and shipping/courier charges will incur VAT, which everyone must pay.
The cost of servicing, adaptation and repair of exempt items is itself fully exempt. This relief applies only to the cost of the service provided; the cost of any parts used may not necessarily qualify for any additional relief.
Obviously, this can lead to some considerable complications where numerous items are bundled together or fitted as spare parts. Consequently, the VAT total shown in your shopping cart may vary from the final invoice. In such circumstances, we will contact you for confirmation before work commences. Refunds or extra charges will be made accordingly.
B: Customers qualify or not for exemption:
Clearly, most of our customers are exempt from VAT on goods designed solely for use by a disabled person, by virtue of their disability. This exemption includes all disabled EU citizens.
For all export sales outside the EU, we are not required to charge UK VAT, although local charges and taxes may apply.
You are not required to pay VAT on exempt items if you are:
- An Individual: If you are chronically sick or disabled and the products are for your personal use. You do not need a doctors letter or other such documentation. Full details can be found at HM Customs and Excise, Notice 701/7, Supplies to handicapped people.
- A Charity: Where the goods are made available by the charity to a specific disabled person for their personal or domestic use. Full details can be found at HM Customs and Excise, Notice 701/7, Supplies to charities.
- Buying for someone else: If you are buying this product for or on behalf of someone who is chronically sick or disabled and the product(s) is for their personal use.
Please be aware that it is your responsibility to ensure that you (or the person you are ordering for) are eligible to receive VAT zero-rated supplies.
Warning: There are serious penalties for making false declarations and for fraudulent evasion of VAT.
C: Where do I sign up?
- If you qualify for VAT Exemption then you will need to complete the VAT Exemption Declaration during the registration process prior to placing an order. The VAT amount will be adjusted accordingly in your shopping basket.
- If you are not eligible for Disability VAT relief, you can still buy anything you want, but we are obliged to charge you standard VAT on the whole of your order.
- If you are from outside the EU, it doesn’t matter if you’re disabled or not, no VAT is charged.