VAT Exemption

Are you eligible for VAT Exemption?

Value Added Tax at the prevailing rate must normally be paid on products purchased for use in the UK. There are however some exceptions.

In the event that you contact Revenue and Customs you are advised to request that details of your call be logged and that a call reference number be given to you. (You will be able to make reference to your call and advice received should your claim be subsequently challenged.)

The essence of the regulation

Only products that are manufactured specifically for or adapted for use by disabled persons are eligible for exemption from Value Added Tax (VAT).

To obtain exemption from VAT on your eligible purchase you must also be eligible as an individual. Broadly speaking, if you are disabled or suffer from a chronic condition that causes severe difficulty with movement you may qualify. (These notes are only intended as a guide and do not constitute a definitive statement. Please check with HMRC)

Note: Present guidelines tend to preclude persons who 'are waiting for an operation' or who 'suffer from a condition that will improve in the short term due to treatment. The rules are at best vague. The relief is intended to assist persons with long term chronic conditions. A letter from a Doctor, medical practitioner or such like can often strengthen your case. But remember, the form upon which you will make your claim is a 'self declaration' and as such you take full responsibility for the claim.

If you are eligible you may be able to recover some or all of the VAT you pay on such products.

Important:

• Do not take eligibility for granted. H.M. Revenue and Customs will seek to recover unpaid V.A.T. if it is subsequently discovered your claim is erroneous.

• Severe penalties exist for V.A.T. evasion. Do not attempt to obtain exemption fraudulently. If you are unsure - seek guidance.

• VAT relief is only available if you (a disabled or qualifying person) purchase a product for your own use which has been manufactured or adapted for use by a disabled person.

Relief is not available if:

• you are a contractor purchasing for a project or installation for a disabled person (you however may be expected to offer your customer exemption on any works carried out for them provided they and the works qualify)

• if you are disabled and purchasing a product considered to be ordinary (goods generally available that have not been designed for or modified for use by a disabled person - an ordinary saucepan for example)

• if you are disabled and wish to purchase a product for somebody else to use. You may not claim exemption if your purchase is a gift for example.

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Advice

Some suppliers show a cavalier attitude and surprising lack of respect for the Laws relating to the eligibility for VAT exemption. If you are casually advised that "it won't be a problem" or "nobody ever checks, so don't worry" you are advised to walk away. If a supplier shows no concern for VAT Legislation or the severe penalties that exist for evading VAT consider how little they think of you as a customer or the trouble they might get you into.

We will always endeavour to guide you properly but we do not claim to be experts in this field. It is always better to seek guidance from HMRC rather than risk making what could be an expensive mistake. Relief from Value Added Tax will always be at the discretion of H.M. Revenue and Customs so it's often better to address your questions to them directly. Always obtain a call reference number when advice is given by HMRC.

Products purchased from the UK for export may also benefit from VAT exemption.

PLEASE CHECK FIRST.

Information contained on this page is intended for assistance only. No liability will be accepted for errors or accuracy, or any matter arising from the use of this information. You are strongly advised to refer to the HM Revenue & Customs website at

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageContactUs_NationalAdviceService

or contact the National Helpline on 0845 010 9000 (+44 208 929 0152 outside UK).