VAT Exemption on Disability Products
VAT exemption on disability products
Disabled people may be entitled to claim Value-Added Tax (VAT) relief on disability goods and services that are designed for use by disabled people. This info guide describes who can apply for VAT relief and what products and services are eligible.
VAT exemption on disability goods
In general, disabled people do not have to pay Value-Added Tax (VAT) on goods and services that are designed / or adapted solely for use by disabled people. These goods and services are often called ‘zero-rated’ or ‘eligible for VAT relief’.
For the supplies of goods and services to be zero-rated, all of the following conditions must be met:
- the customer is eligible to purchase supplies at the zero rate.
- the goods are for the personal or domestic use.
- the goods and services are eligible to be supplied at the zero rate.
How to get VAT free products
To get the product VAT free your disability has to qualify. For VAT purposes, you’re disabled or have a long-term illness if:
- you have a physical or mental impairment that affects your ability to carry out everyday activities, for example blindness.
- you have a condition that’s treated as chronic sickness.
- you are terminally ill.
This definition does not include a frail elderly person who is otherwise able-bodied or someone who is only temporarily disabled.
What goods and services are eligible?
This is not a complete list of eligible equipment but the following may be included: wheelchairs, adjustable beds, computer hardware/software designed for disabled people, household aids.
It also includes the purchase of any vehicle that has been wheelchair (powered or manual) adapted. The adaptation to the vehicle must be substantial and permanent. The hire of an adapted vehicle from Motability is also included in the scheme.
Similarly, any services purchased which apply specifically to disabled people are eligible for VAT relief. These include the repair and maintenance of disability equipment, disabled home adaptations and disabled equipment hire.
How do I claim?
The vast majority of suppliers will know if their product has been specifically designed to help disabled people. They will offer their products free of VAT at the point of sale. You’ll need to confirm in writing that you meet these conditions. Your supplier may give you a form for this. Most suppliers will use the form —Notice 701/7 VAT reliefs for disabled people.
If you are shopping online, the supplier or manufacturer should have an online copy of the declaration form, which you can then fill in as you make your purchase.
Other contacts and resources
HM Revenue and CustomsdisabledVAT relief helpline:
0300 123 1073
VAT relief for disabled people
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Helpline: 0300 323 9961
Text: 0778 620 0707
Information produced 2016. Please note that information may be subject to change. All information is provided in good faith but Disability Information Scotland does not endorse any product or service referred to within this resource.
Disability Information Scotland is a registered Scottish charity (SC030004)