Value Added Tax

Disabled individuals ― overview

Produced by Tolley
  • 04 Apr 2022 11:43

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

  • Disabled individuals ― overview
  • What conditions need to be met to zero-rate the goods / services?
  • Eligible customers
  • Domestic and personal use
  • Evidence that the customer is eligible
  • Who is required to pay for the eligible goods?
  • What items are eligible for the zero-rate?
  • What procedure needs to be following to import eligible goods?
  • Practical points

Disabled individuals ― overview

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.

This note should be read in conjunction with the Disabled individuals ― supplies of installation, repair, adaptation and building services and Disabled individuals ― motor vehicles guidance notes.

What conditions need to be met to zero-rate the goods / services?

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

  1. the supply must be made to an eligible customer (see below)

  2. the goods are to be used for the domestic or personal use of the eligible customer

  3. eligible zero-rated goods / services are supplied (see below)

VATA 1994, Sch 8, Group 12; as amended by SI 1997/2744, SI 2000/805, SI 2001/754, SI 2002/1397 and SI 2002/2813; VATA 1994, s 30

The supplier is responsible for ensuring that the goods / services supplied can be zero-rated.

Eligible customers

The following are treated as eligible customers:

  1. a chronically sick or disabled person, which includes the following:

    1. individuals with a mental or physical impairment that is long-term and has a substantially adverse effect on their ability to undertake day-to-day activities

    2. individuals where the medical profession deems that the condition is a chronic sickness

    3. a terminally ill individual

  2. charities ― supplies of goods to eligible charities can also be zero-rated. Supplies to charities will only qualify for VAT relief where the charity makes the goods available to

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