1. What law covers this notice?

2. Who can purchase zero-rated goods and services?

3. What is meant by the term 'chronically sick' or 'disabled'?

4. How can i get vat relief / do i make a declaration?

5. What if a customer is unable to make a written declaration?

6. Use and misuse of declaration forms

7. Goods eligible for zero-rating

8. Terminology

The VAT Act 1994:

• Section 30 holds that goods and services specified in Schedule 8 to the Act are zero-rated
• Schedule 8, Group 12 (as amended by SI 1997/2744, SI 2000/805 and 2001/754) specifies the zero-rated goods and services explained in this notice 701/7 - VAT reliefs for disabled people

2. Who can purchase zero-rated goods and services?

The zero-rating of goods and services for disabled people depends in part upon the status of the recipient.

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

You can only zero rate supplies to:

• handicapped people
• charities
• certain eligible bodies

As a supplier we must take reasonable steps to check that our customer is eligible to receive goods at the zero rate.

3. What is meant by the term ´chronically sick´ or ´disabled´?

A person is ´chronically sick or disabled´ if he/she is a person:

• with a physical or mental impairment which has a long-term and substantial adverse effect upon his/her ability to carry out everyday activities;
• with a condition which the medical profession treats as a chronic sickness, such as diabetes;
• who is terminally ill.

If a parent, spouse or guardian acts on behalf of a ´chronically sick or disabled´ person, your supply is treated as being made to that ´chronically sick or disabled´ person.

4. How can i get vat relief / do i make a declaration

You can make a declaration in one of two ways;

1. You can fill in the form online by following the link below,

      Click here to Fill in the VAT Relief Form

2. or, by printing a copy to sign and return via post.

      Click here for a printable version of this form

5. What if a customer is unable to make a written declaration?

It may not always be possible for a disabled person to sign a declaration (for example, if the person is a child or unable to write). In such cases, the signature of a parent, guardian, doctor or another responsible person is acceptable on the declaration.

6. Use and misuse of declaration forms

A declaration only confirms your customer´s status as a person eligible to receive zero-rated goods and services and the use to which he will put the goods or services he buys. It does not mean that the goods and services themselves fulfill all the conditions for zero-rating.

If you believe an eligibility declaration to be inaccurate or untrue, you must not zero rate your supply. You should also take care that procedures, forms and literature do not encourage or lead customers to make such a declaration. There are penalties for making or accepting false declarations and for fraudulent evasion of VAT. If, however, having taken all reasonable steps to check the validity of a declaration you fail to identify an inaccuracy, and in good faith make a supply at the zero rate, we will not seek to recover the tax due, if all other conditions for relief are met. For further information see Notice 48 Extra-statutory concessions.

7. Goods eligible for zero-rating

Electrically or mechanically adjustable beds, chair or stair lifts, hoists and lifters, sanitary devices You can zero rate the supply to an eligible person of:

• an electrically or mechanically adjustable bed designed for invalids. For a bed to be eligible for relief it must clearly stand out as being something specialised for the use of invalids. As well as being electrically or mechanically adjustable, it should additionally have specific design features which distinguish it from a standard bed;
• a stair lift or a chair lift designed for use in connection with a wheelchair. (It is not necessary for the lift to carry the person whilst seated in the wheelchair);
• a hoist or lifter designed for use by invalids. This includes lifting seat chairs;
• commode stools, commode chairs or devices with a warm air drier and bidet jet incorporated, frames or other devices to help sitting on or rising from a sanitary appliance.

Equipment which has been designed solely for use by a disabled people will remain eligible for relief even though they are available to be purchased by people who do not have a disability. VAT relief will however only apply to supplies which are made to eligible persons or bodies as detailed in paragraph 3.1.

8. Terminology The term ´disabled´ is used throughout this notice and means ´handicapped´ or ´disabled or chronically sick´.