VAT relief for disable people for improving the quality of life
VAT law states that one must be ‘chronically sick or disabled’ to be eligible for VAT relief on certain goods and services. A person may be called as disables under section 1 of the Disability Discrimination Act 1995, if the person has a condition that the doctor treat as a chronic sickness like long term physical or mental impairment to carry normal out day to day activities (DDA)
But a person may not be qualified for vat relief if he fulfills the criteria given below
• The person has a temporary injury like a broken leg
• A fragile older person who is otherwise well and not disabled.
But there lies some discrimination in VAT laws regarding disability. A person having a broken leg may be considered as disabled under Dutch law and therefore apply for VAT relief on the purchase of crutches in the Netherlands, but failed to be considered handicapped in the UK and has to accept the standard rate of VAT for the same purchase.
Products & Service those are eligible for VAT relief
VAT Notice 701/7 will provide eligibility declarations on VAT relief for disabled people. In the entire cases the customer will get relief for VAT and the supplier will require an eligibility declaration to this consequence.
• Any equipment utilized to overcome a disability by somebody who is under the Disability Discrimination Act (DDA) definition.
• The servicing, maintenance and installation of disability equipment or zero rated equipment exclusively designed for use by a disabled person
• VAT relief available for alterations to private residences (provision, addition and revision of a bathroom, washroom or lavatory and related goods) of disabled people. It should also be applied equally to workplace modifications.
• Any alteration work that is done on an unadapted vehicle to make it fit properly for a disabled person’s condition is also suitable for zero-rating. No VAT relief will be applied on the procurement of an unadapted vehicle.
• A wheelchair or stretcher user don’t have to pay VAT while buying a motor vehicle that has been largely and enduringly get for personal use.
• Leasing or hiring a vehicle, wheelchair or scooter under the Motability Scheme (may be Zero rated in VAT notice 701/7) will be eligible for VAT Relief. Motability is an aid extended to disabled people for buying or hiring a vehicles and powered wheelchairs or scooters.
• Charitable trust working for the welfare of Blind and partially sighted people is eligible for buying certain goods without incurring any VAT charge on them.
• Some goods that can be purposely designed for a blind or partially sighted person such as print scanners, may meet the criteria for VAT relief.
• Some medical and surgical appliances – electrically or mechanically adjustable beds chair or stair lifts, hoists and sanitary devices are eligible for VAT relief.
• Gadgets and devices that are designed solely to make everyday tasks easier for disabled people, like kettle tippers
• Computer software or hardware designed specifically for disabled people
How VAT Relief work
Before you reimburse for any product or service, check that it fulfills certain conditions to qualify for zero-rating and that the supplier is registered for VAT.
One may have to sign a form declaring that he/she has a persistent sickness or disability and what it is while purchasing a zero-rated product or service,. You should also state that the product or service will be used only for own ‘individual or familial use’. The supplier should keep copies of this form.
You can then pay money for the product or service excluding VAT amount. Before paying for the product or service the vat amount will be taken off the purchase price and adjusted accordingly.
References :
www.hmrc.gov.uk/charities/vat-notices-disabled.htm
http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/DG_10028495
http://www.counselandcarestore.co.uk/assets/downloads/faq_vat_for_disabled_people.pdf
Summary :
This publication provides information on “How vat relief is applied on product and services for helping disabled people ’’
Useful Links:
http://www.vatrefundindia.com/index.htm
Company Information:
BT Associates has the expertise in Accounting, Tax Processing and VAT reclaim businesses for US & UK based corporate and CPA firms. The firm helps clients to claim refund/rebate of excise duty and VAT paid on consumption of goods and service.
Company Address:
21/1, CANAL STREET
Lake Town VIP Crossing
Kolkata, West Bengal 700 048
India
Website : http://www.btassociate.com/
E-mail: neha.pandeya@btassociate.com
Contact Number:
Phone : 033 2534-2717/033 6451-8729
Us Toll free : (866)-493-4944
Fax : (+91) 033 2534 4110
