A Guide to VAT Exemption
What is VAT Exemption?
Under certain conditions some of the products from our range can be purchased with exemption from VAT. This is because the UK government provides some special rules that we can apply when these conditions are met. There are three conditions that must be met for us to supply products at a zero rate of VAT. These are:
- You declare that you (or the person for whom you are purchasing the products on behalf of) are chronically sick or disabled *
- The products that you are purchasing are eligible to be supplied at a zero rate of VAT **
- The products that you are purchasing are being supplied to you (or the person for whom you are purchasing the products on behalf of) for domestic or personal use only ***
You will also need to indicate to us that you wish us to apply VAT exemption when you are placing your order. To do this via our website you must click on the checkbox that appears under the heading of ‘VAT Relief’ during the process of submitting your order. If you do so you will see that the amount of VAT on your order is reduced in the following stages of the order submission process. However, only the VAT on products eligible for exemption will be removed from the order, any other products on your order that are not eligible will have VAT charged on them at the standard rate of 20%. In all circumstances we must charge VAT on the delivery charge that we apply to your order.
* The VAT Exemption Form
You must complete and return to us a copy of our VAT Exemption form. This form is a simple declaration that you (or the person you are purchasing the products on behalf of) are chronically sick, i.e. is suffering from a long-term illness, or are disabled.
You can complete your VAT exemption form online and submit it during our website ordering process. Alternatively, if you are placing your order by telephone or email, or if you have any questions or would prefer a printed copy of the form, please contact our Sales Department on 01457 819790 or via firstname.lastname@example.org
You do not have to be registered disabled, have the form signed by a doctor or supply us with any kind of certificate to claim under these rules; however, you must be specific when describing your condition on the form.
You can also use this form if you are purchasing products on behalf of someone, for example a child, someone you care for or someone who is not able to complete the form themselves because of their illness or disability.
Please note, we are not able to process an order with VAT exemption without first receiving a completed VAT exemption form.
** Products Eligible for VAT Relief
Not all of the products that we sell are eligible to be supplied at a zero rate of VAT. There are a number of rules defined by VAT laws whereby products can be registered as eligible. The law that applies to the eligible products that we sell relates to the intention for which the products where originally designed, in that they are ‘equipment and appliances designed solely for use by disabled people’. The law relating to this defines the term ‘disabled’ as meaning ‘disabled or chronically sick’.
It is the responsibility of the manufacturer of the product (or importer if the product is derived from outside the UK) to make a claim for the eligibility of a product based upon this definition. The decision as to whether to allow VAT relief on a product is made by the government following such a claim. Where we sell products that are manufactured by Inclusive Technology Ltd (these are generally software titles) and we believe that these meet with the conditions we have made the necessary claim. Where we sell products which we have imported from outside the UK and we believe these products meet with the conditions we have also made the necessary claim. For all other products that we sell the claim for eligibility on these products is outside of the control of Inclusive Technology Ltd.
*** Products Purchased for Domestic or Personal Use Only
The law relating to this defines the term ‘domestic or personal use’ as meaning the products must be supplied with the intention to ‘be made available specifically for the use of an eligible individual (or series of eligible individuals)’.
The law also defines the following as exemptions to ‘personal’ or ‘domestic’ use (and therefore not eligible for VAT exemption):
- goods and services used for business purposes
- supplies made widely available for a whole group of people to use as they wish
- goods and services supplied to;
- an in-patient or resident of a hospital or nursing home;
- any person attending the premises of a hospital or nursing home for care or treatment; and
- any other person or commercial establishment where the goods are for use by, or in connection with, either of the above
For more information on the rules and regulations applied to VAT relief please see the section UK HM Customs and Excise webpage concerning VAT reliefs for disabled people or view the PDF.