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VAT Exemption (Zero Rated) for Wheelchair Users

As VAT registered Specialist Vehicle Suppliers we are entitled to offer new and used wheelchair accessible vehicles or vehicles adapted specifically to aid wheelchair users, free from VAT charges providing that the vehicle has been designed and permanently adapted for the carriage of a disabled person who is a wheelchair user.vat advice clarevat advice

The 'qualifying' purchaser or leasee may be for example:- 

  • the actual wheelchair user OR
  • the parent of a wheelchair user
  • the family member of a wheelchair user
  • the partner of a wheelchair user
  • the guardian or carer of a wheelchair user . . . 

". . . . . when the vehicle is supplied for the domestic or personal use of the
wheelchair user who may remain in their wheelchair or transfer to any seat
within the converted vehicle"

Both new and used vehicles qualify under the scheme.

Who else could qualify 

Our vehicles can also be supplied free of VAT to certain Registered Charities
"for the benefit of a specific disabled person or persons for domestic or
personal use."

Who does not qualify

Where the vehicle has any commercial use the exemption does not apply.wheelchair smart couple suites 300 450

For example :
Nursing Homes, Taxi Operators & Local Authorities who may reclaim VAT in the normal way if registered.

The 3 Year Rule 

With effect from 1 April 2017, VAT relief is only allowable on one adapted vehicle, purchased (either outright or through a finance lease) for the personal use of the disabled wheelchair user, in a period of 3 years. This is known as the ‘3-year rule’.
Effectively this means that a qualifying disabled person wishing to change or upgrade their adapted vehicle in less than a period of 3 years of ownership is not entitled to vat relief on the purchase of a new or used wav unless there is a bonafide medical reason to do so or their existing vehicle is damaged beyond repair or stolen. 
Download : HMRC Guidance on the 3 year rule   pdf download tiny

 

What proof of disability is required for individuals 

No formal documentation or proof of disability is required other than a simple written declaration from the purchaser and supplier confirming that the criteria is fulfilled.

Download : VAT Exemption Form for Private Disabled Buyers  pdf download tiny

More detailed guidance direct from Her Majesty's Revenue & Customs is available.

Download : HMRC Guidance pdf download tiny

 

 

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Useful Information : VAT Relief on repairs and maintenance

Did you know that you are entitled to claim VAT relief for repairs & maintenance on both new and used wheelchair accessible vehicles that have been supplied to private individuals exempt from vat?   click here to view details
   

                

 

 

 

All vehicles offered on our website presume private disabled usage (non-business) with appropriate vat exemption for private disabled wheelchair users
(there may be additional road tax to pay for those who do not qualify for disabled road tax) 
(click here for an example road tax Certificate of Entitlement letter from the DWP)

 

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