Zero-rating - supplies to disabled individuals

By Tolley

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

  • Zero-rating - supplies to disabled individuals
  • Requirements
  • Eligible goods
  • International transactions
  • Eligibility declarations

This guidance note provides an overview of the rules relating to the application of the zero-rate of VAT to certain supplies of goods / services to disabled people.

Notice 701/7 ; De Voil Indirect Tax Service V6.266 (subscription sensitive); VRDP01000

The following conditions must be satisfied before a supply of goods / services can be zero-rated under these provisions:

  • the customer meets the eligibility criteria (see below)
  • the goods are to be used for the domestic or personal use of the eligible customer
  • the goods / services meet the eligibility requirements (see below)

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

The supplier is responsible for ensuring that the goods / services supplied can be zero-rated. If zero-rating is dependent on the designers' intention, and the seller did not design the product, the seller should obtain written confirmation from the designer / importer / manufacturer that the goods meet the eligibility requirements (see below). If the goods have not been specifically designed for use solely by disabled people, they cannot be zero-rated. Therefore if the manufacturer does not claim that the goods meet these conditions, they cannot be zero-rated under these provisions.

Eligible customers

Eligible goods can be supplied at the zero-rate to the following customers:

  • chronically sick or disabled people - the goods must be purchased / acquired for their domestic or personal use. A chronically sick or disabled person includes the following:
    • individuals with a mental or physical impairment which is long-term and has a substantially adverse

More on Disabled individuals: