‘Chronically sick or disabled’ is expanded in HMRC guidance as a person: VAT law provides certain reliefs for people who are ‘chronically sick or disabled’. What is the definition of ‘disability’ for VAT reliefs? If the disabled person is a child, or is unable to write, a representative, doctor or health professional would also be able to make the purchase and secure zero rating where all other conditions are met.Ī reduced rate (currently 5%) can be applied to certain mobility aids installed in the homes of people aged 60 and over, who are not disabled and therefore not entitled to the zero rate. Similarly you could buy a gift for a disabled child that qualified for a VAT zero rate. This means that the relief can apply if you are the carer of a disabled child and are catering for their needs. Most zero rates can apply if a responsible person (for example, spouse, parent, guardian, trustee) represents the disabled person when buying and paying for the goods and services, provided the other conditions are met. Both the product and the disability have to qualify. Not everything that is supplied to disabled people is zero-rated for VAT.

However, the rules about VAT reliefs for disabled people are complex. Since VAT was introduced in the UK in 1973, successive governments have recognised that disabled people should not have to bear all of the extra VAT costs which they could incur in meeting their needs. Supplies (for example, goods and services) on which you do not have to pay VAT are often referred to as 'zero-rated' or ‘VAT-free’ or 'eligible for VAT relief'. The two main types of reliefs from VAT that we will look at here are zero rates and reduced rates.Ī zero rate can be applied to certain supplies to disabled people for their domestic or personal use – that means, no VAT is charged. But VAT reliefs can also be available on other goods and services if you can identify that you are entitled. Sometimes you automatically benefit where no VAT is charged on certain items – for example, basic foods. Under VAT law, the VAT is regarded as being included in the price of goods or services unless otherwise stated.

In the UK the standard rate for VAT is 20 per cent. VAT (Value Added Tax) is a tax that you pay as a consumer when you buy goods and services in the United Kingdom (UK).

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