Useful Information

Since 2001 it has been possible for disabled wheelchair users to zero rate the purchase of a VAT qualifying vehicle subject to certain conditions being met.

 

THE FIRST QUESTION TO ASK IS ‘WHAT IS A WHEELCHAIR USER’

  1. A wheelchair user is defined as someone who would ‘normally use a wheelchair in order to be mobile’

  2. Someone who has a degenerative condition for example Multiple Sclerosis and uses a wheelchair when the condition requires it, Qualifies for VAT exemption

  3. Someone who only uses a wheelchair when, for example they visit a garden centre does not qualify for VAT relief

 

The vehicle must be ‘substantially and permanently adapted’ at the point of sale to allow the disabled user to do one of the following; gain access to the vehicle, drive the vehicle or stow a wheelchair on or in the vehicle. examples of qualifying adaptions are: Push/pull hand controls, Left foot accelerators and wheelchair hoists.

ZERO RATING A VEHICLE FOR VAT

  1. In order to satisfy type approval regulations the vehicle must be registered prior to adaptation(this applies to all adaptation work carried out)

  2. Adaptations should be fitted

  3. Adaptations must be invoiced to the dealership – with VAT as this is a business to business transaction**

  4. The vehicle and adaptations must be invoiced to the customer on one invoice

  5. This whole invoice can be zero rated for VAT

  6. A VAT exemption declaration must be completed by the customer and the dealership and should be kept on file with the vehicle invoice

 

Note: If the vehicle is being purchased using finance, the invoice to the finance company should include the adaptations and is subject to VAT. The invoice from the

finance company to the customer is the one which should be zero rated for VAT as in effect it is they who sell the vehicle to the wheelchair user.