In general, disabled people are not required to pay value-added tax (VAT) on products and services that are designed for, or adapted, sole for use by disabled people due to disability VAT relief. However, not all products that may be considered solely for use by disabled people are eligible, so it can often be confusing to understand what is VAT exempt.
Who is eligible?
Anyone who is disabled or has a long-term illness will not be charged VAT on products designed or adapted for your personal or domestic use. For VAT purposes you are disabled or have a long-term illness if you:
- 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, like diabetes
- you’re terminally ill
People who are older but able bodied, and those who are disabled temporarily will not be VAT exempt.
What products qualify?
It can sometimes be difficult to determine what products are and are not eligible, usually suppliers will be able to let you know whether a product is eligible. Products like wheelchairs, adjustable beds, living aids and stairlifts are VAT exempt. The purchase of any vehicle that has been adapted to suit the use by a disabled person should be exempt of VAT, but the adaptation should be significant and permanent.
You can also get VAT exemption on services relating to disability products, for example;
- the installation and any extra work needed as part of this
- repairs or maintenance
- spare parts or accessories
Our site outlines what products are eligible for disability VAT relief where products are listed with a price ‘With VAT Relief’. If you are unsure about whether you, or your purchase qualify, don’t hesitate to give our experts a call on 0800 3689923. For more information visit the gov.uk site for information on financial help for disabled people.