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.
The 'qualifying' purchaser or leasee may be for example:-
". . . . . 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.
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
Where the vehicle has any commercial use the exemption does not apply.
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.
: 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?