The level of VAT charged on goods and services in the UK is governed by the VAT Act 1994, the application of VAT to goods and services for disabled and older people is defined in VAT Notice 701/7 (December 2014). VAT Notice 701/7 was updated on 18 December 2014 and replaces Notice 701/7 (August 2002) and has been rewritten to improve readability.
This notice explains:
- which goods and services for disabled people are zero rated for VAT
- which goods and services for older people are reduced rated for VAT
- the declaration which buyers of the goods and services customer should give
There are now links to customer help sheets and separate links to eligibility declarations. HM Revenue and Customs (HMRC) has added information about the reduced rate for certain mobility products. HMRC has clarified the information about what goods and services are eligible for relief.
Supplies of goods and services are only zero rated when all of the following conditions are met:
- the customer is eligible to purchase supplies at the zero rate
- the goods are for the personal or domestic use of the customer
- the goods and services are eligible to be supplied at the zero rate
SpokeGuards are zero rated for VAT because they are qualified as: “Other equipment and appliances ‘designed solely’ for use by a disabled person.”
To qualify for obtained SpokeGuards at a zero rate of VAT, we need to have a signed declaration that the customer is eligible to purchase supplies at the zero rate. This is why we ask for a ‘VAT Exemption Form’ to be completed and returned. More information and detailed descriptions and definitions can be found at the HMRC website by clicking here.