Who
can claim VAT Exemption Relief on purchases?
Eligible Individuals: If you are chronically sick or disabled
and the products are for your personal use. 'Chronic' meaning lasting
a long time.
Eligible Charities:Where the goods are made available by
the charity to a disabled person for their personal or domestic
use.
Full details can be found at the HM Revenue and Customs website
under 'VAT reliefs for disabled people; HMRC Reference: Notice 701/7
(August 2002)'
by clicking on the following link Notice
701/7 VAT reliefs for disabled people
Or
See below VAT EXEMPTION CUSTOMER ELIGIBLITY. Where Section 3. Customer eligibility HMRC Reference: Notice 701/7
(August 2002) is shown for your information.
Not all Products are eligible for VAT exemption relief
IF YOU ARE ELIGIBLE FOR VAT EXEMPTION RELIEF
- You
can buy most of the products in our on-line shop without having
to pay VAT.
- Those
products which are not eligible for VAT relief are clearly marked
'This item is subject to VAT' and will be shown in your shopping
basket at the standard 17.5% VAT rate.
- ALL
those products, which are eligible for VAT relief, will be shown
in your shopping basket at a 0% VAT rate.
IF YOU ARE NOT ELIGIBLE FOR VAT EXEMPTION RELIEF
- We
are obliged to charge you the full 17.5% VAT on the whole of your
order.
- Those
products which are not eligible for VAT relief are clearly marked
'This item is subject to VAT' and will be shown in your shopping
basket at the standard 17.5% VAT rate.
- PLEASE
NOTE ALL those products which are eligible for VAT relief will
be shown in your shopping basket and on your Order Request acknowledgement
email at a 0% VAT rate. In processing your order we re-calculate
your bill to include VAT on all items and charge your account
accordingly.
VAT
Exemption Declaration Form
The government requires that you complete a VAT Exemption declaration
form. If you are in any doubt as to whether you are eligible to receive
goods or services zero-rated for VAT you should consult
HM
Revenue and Customs Notice 701/7 VAT reliefs for disabled people
Notice 701/7 VAT reliefs for disabled people
Or contact HM Revenue and Customs National Advice Service on 0845
010 9000 before signing the 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.
Ordering
Ordering online: A VAT Exemption declaration is included
in your ordering process.
Ordering by Phone: Complete the form below and email it to
us before you phone us to ORDER. Please Note: We cannot process
your Phone Order until we receive your completed VAT Exemption Declaration
Form. |
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VAT
EXEMPTION CUSTOMER ELIGIBILITY
EXTRACTS
from HMRC Reference: Notice 701/7 (August 2002)
3. Customer eligibility
3.1 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 - see paragraph 2.1. You
can only zero rate supplies to:
handicapped people - see paragraph 3.2;
charities - see paragraph 3.3; and
certain eligible bodies - see paragraph 3.4.
As a supplier you must take reasonable steps to check that your
customer is eligible to receive your goods or services at the zero
rate.
3.2 Supplies to handicapped people
You can only zero rate supplies to handicapped people when:
the person is 'chronically sick or disabled' - see sub-paragraph
3.2.1, and
the goods and services are purchased or acquired for their personal
or domestic use - see paragraph 3.5.
3.2.1 What does 'chronically sick or disabled' mean?
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; or
who is terminally ill.
It does not include a frail elderly person who is otherwise able-bodied
or any person who is only temporarily disabled or incapacitated,
such as with a broken limb.
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.
3.2.2 Terminology
The term 'disabled' is used throughout this notice and means 'handicapped'
or 'disabled or chronically sick'.
3.3 Supplies to charities
You cannot zero rate all of the goods and services listed at paragraph
2.4 to all charities. You should, therefore, take extra care in
checking that a charity is eligible for VAT relief before zero-rating
your supply.
Supplies of goods listed at paragraph 2.4 to charities will qualify
for VAT relief where the goods are made available by the charity
to a disabled person for their personal or domestic use - see paragraph
3.5.
There are certain other circumstances when supplies of goods listed
at paragraph 2.4 will qualify for VAT relief - see Notice 701/1
Charities and Notice 701/6 Charity funded equipment for medical,
veterinary etc uses.
3.3.1 What is a charity?
Bodies in England and Wales have charitable status when they are
registered, excepted or exempted from registration with the Charity
Commission, or bodies anywhere in the United Kingdom which are treated
by the Inland Revenue as charitable. Not all non-profit making organisations
are charities.
There is no distinction for VAT purposes between those charities
registered with the Charity Commission and those that are not required
to register. However, unregistered charities claiming zero-rating
may need to demonstrate that they have 'charitable status'. This
may be achieved from their written constitution or by the recognition
of their charitable status by the Inland Revenue.
Further information on VAT reliefs available for charities is contained
in Notice 701/1 Charities.
3.4 Supplies to eligible bodies
Supplies purchased by certain healthcare bodies and hospitals with
charitable funds may qualify to be zero-rated under separate rules.
For more information see VAT Notice 701/6 Charity funded equipment
for medical, veterinary etc uses.
3.5 What does for 'domestic or personal' use mean?
'Domestic or personal' use means that the supply must be made available
specifically for the use of an eligible individual (or series of
eligible individuals).
Excluded from the terms 'personal' or 'domestic', and not eligible
for VAT relief are:
goods and services used for business purposes;
supplies made widely available for a whole group of people to use
as they wish. For example, a stair lift in a charity building for
the use or convenience of all chronically sick or disabled persons
who might use the building would not qualify for relief. This is
because the charity is making the lift available for the general
use of all those people who might require it, rather than for the
personal use of specified individuals;
goods and services supplied to:
- an in patient or resident of a hospital or nursing home;
- any person attending the premises of a hospital or nursing home
for care or treatment; and
- any other person or commercial establishment where the goods are
for use by, or in connection with, either of the above,
where the items are intended for use in the care or treatment provided
in the hospital or nursing home. For more information see Notice
701/31 Health and Care institutions.
3.6 Can anyone pay for the eligible goods and services?
As a general rule, yes.
There are, however, special rules that apply to supplies of certain
types of equipment paid for or arranged at the behest of the National
Health Service, hospitals or certain other institutions that provide
nursing or residential care. For further information on these rules
please see Notice 701/31 Health and Care institutions.
3.8 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.
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