VAT exemption offers substantial financial relief for chronically sick or disabled individuals in the UK, enabling them to purchase certain items at 0% VAT. The objective of VAT relief is to make vital products and services more attainable by removing additional costs. However, navigating the rules can be intricate, and understanding them is crucial to ensuring the exemption is correctly applied.
Did You Know You Don’t Have to Be the Purchaser?
A crucial yet often overlooked point is that VAT exemption can still be applied if you’re buying an eligible item as a gift for someone who qualifies. You don’t need to be disabled or have a chronic illness yourself; the only criteria is that the end user of the product meets the VAT exemption requirements. Therefore, if you’re shopping for a disabled friend or family member, you can claim the VAT relief—provided the item or service is eligible.
What Goods And Services Qualify?
Goods and services eligible for VAT exemption are typically termed eligible for VAT exemption relief. However, not all items purchased for disabled individuals are automatically exempt. To qualify, they generally must:
- Be designed solely for disabled people
- Involve charges related to adapting equipment for a disabled user’s needs
- Be services like specific building modifications to a disabled person’s home
Who Is Eligible?
The law specifies that a person must be “chronically sick or disabled” to qualify for VAT exemption. This includes individuals who:
- Have a long-term physical or mental impairment severely affecting their ability to carry out everyday activities
- Have a condition regarded as chronic, like diabetes
- Are terminally ill
Individuals with temporary injuries or generally frail but otherwise healthy seniors typically do not qualify for VAT relief under these guidelines.
What Proof Is Required?
When making a purchase, the government requires a simple declaration about the nature of the disability. On The Able Label’s website, you only need to:
- Create an account and declare that the end user qualifies for VAT exemption.
- If you qualify, to claim VAT exemption we need written confirmation of your name, your address and the nature of your disability and/or chronic or terminal illness.
- If buying for a gift or behalf of someone eligible for VAT exemption please provide their name, address and nature of their disability and/or chronic or terminal illness.
Price Display On The Website
For clarity, our VAT-exempt items are displayed with prices that include and exclude VAT. If you’re not logged in, you will see a reminder that logging in and declaring VAT exemption could save you the added tax.
Important Reminders
- Retailer’s Role: VAT exemption eligibility is determined by law, not the retailer. If a product is eligible, the relief is applied; if not, VAT must be charged.
- No Retroactive VAT Refunds: Once an order is confirmed, the price is set. VAT relief cannot be applied retroactively to past purchases, so ensure you declare VAT exemption during the purchase.
Learn More
For further information or detailed guidance, the HM Revenue & Customs (HMRC) website offers extensive resources on VAT relief for disabled individuals. You can also contact HMRC’s Charities Helpline for inquiries.
HMRC Charities Helpline
Phone: 0300 123 1073
Hours: 8:00 am - 5:00 pm, Monday to Friday (closed on weekends and bank holidays).
VAT relief can make essential products and services more affordable for disabled individuals. With this knowledge, you can ensure that they benefit from the exemption, even when purchasing items on their behalf.
