Zero Rate VAT

In very simple terms, if you are disabled or chronically sick, you do not have to pay VAT on anything you buy that is specifically designed to help you with you disability or anything that is adapted so that you can use it.  This also includes services you pay for to help with your disability and could include things like building work to adapt your home.

For this level of VAT relief you need to have either a long term, physical or mental condition that severely effects your ability to carry out everyday activities, a chronic sickness or be terminally ill.

Cars and Motor Vehicles

Image by jam_90s via Flickr

It is also possible to buy a car or other motor vehicle at Zero Rate VAT.  In this case though, the rules are more strict.

To be eligible, you have use a stretcher or need a wheelchair to be mobile.  Please note that, at the moment, this does not include people who use an invalid buggy or scooter.  However, someone who has a degenerative condition and doesn’t use a wheelchair all the time may still qualify.

In addition to the above, the vehicle being bought must have a ‘substantial and permanent adaptation’.  This is where the rules get a little sketchy because an adaptation might be substantial to one person who could not use the vehicle without it but inconsequential to someone else.  However, I have found dealers are very accommodating and understanding.

Interestingly, if you by a vehicle free of VAT, the future maintenance of the vehicle is also free of VAT.

If you are looking for a new car, you should also consider the Motability Scheme.

Further Reference

Obviously I have only scratched the service.  For further reading, please try these websites:

• Direct Gov – VAT relief on products and services for Disabled People
• HM Revenues and Customs – Equipment and services for Disabled People might be free of VAT

Where Did You Get Help?

If you have bought products, services or vehicles VAT free, what was your experience?  Where did you get advice?  Is there a website that explained it all clearly?  Tell us in the comments!