Disabled individuals - supplies of installation, repair, adaptation and building services

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Disabled individuals - supplies of installation, repair, adaptation and building services
  • Installation, maintenance and repair services
  • Adapting goods
  • Warranties
  • Buildings and construction services
  • Emergency alarm call systems

This guidance note provides an overview of when supplies of building services can be zero-rated when provided to an eligible disabled person. Please see the Zero-rating - supplies to disabled individuals guidance note for more information on the reliefs available to disabled individuals.

Certain building work is liable to VAT at the zero-rate, see the Zero-rating the construction of a new building and Approved alterations to protected buildings guidance notes. However, certain construction services can be zero-rated under these provisions explained below.

Installation, maintenance and repair services

A business can zero-rate installation services supplied to an eligible customer where they are installing any of the goods described in the Zero-rating - supplies to disabled individuals guidance note, provided that the goods that being installed:

Notice 701/7 ; De Voil Indirect Tax Service V6.266 (subscription sensitive); VATA 1994, Sch 8, Group 12; as amended by SI 1997/2744, SI 2000/805 and SI 2001/754 (subscription sensitive); VATA 1994, s 30; VRDP03000; VRDP42000
  • are themselves eligible for relief
  • have not been paid for or arranged by the National Health Service, any other hospital or nursing home

Typical examples of installation services that would be zero-rated under these provisions are:

  • plumbing in an eligible sanitary appliance
  • wiring up an eligible electrically adjustable bed
  • installing a chair lift

Business are eligible to zero-rate the supply to an eligible person the supply of services connected with repairing or maintaining any of the goods specified in the Zero-rating - supplies to disabled individuals guidance note.

Adapting goods

A business is entitled to zero-rate the service of adapting any general purpose goods

More on Disabled individuals: