VAT Exemptions

VAT Relief on Vehicle Adaptations:

Any adaptations made to any existing vehicle to suit the needs of a disabled person are 0% rated for VAT. (This includes the labour costs and the component parts used to create the adaptation).

This is a general VAT relief available to all people with disabilities and it applies equally to adaptations to the home and any other adaptations or specialised equipment that is required specifically due to the nature of your disabilities.

When buying component parts for an adaptation or paying an engineer for the supply of component parts and/or the installation/adaptation work that qualifies for VAT relief you must supply the vendor or engineer with a ‘VAT Disability Exemption Declaration form’. There is a link to the form at the bottom of this page. 

VAT Relief on the Purchase of Vehicles:

When it comes to getting the 0% rated VAT exemption on the purchase of a vehicle it gets a bit more complicated.

Vehicles designed and produced specifically for "Wheelchair users” are 0% rated for VAT.  Also if a vehicle that is not specifically designed for a wheelchair user but is to be substantially adapted to suit the needs of a wheelchair user prior to completion of the sale, the whole vehicle becomes eligible for VAT relief.

So it makes sense for wheelchair users, where possible, to have adaptations made to a new vehicle by the dealership that is selling you the vehicle (even if the supplier outsource the actual adaptation work) before completing the sale, that way you can get the VAT relief.

For the purpose of this VAT exemption a “Wheelchair User” is defined as: “Somebody who is normally reliant on the use of a wheelchair in order to be mobile”.

NB. People who are temporarily using a wheelchair while recovering from injury etc. do not qualify for VAT relief on the purchase of a vehicle.
Users of Mobility scooters also do not qualify for VAT relief on the purchase of a vehicle, as Mobility Scooters are not wheelchairs.

If a vehicle is purchased with a view to having it adapted for use by a disabled person, the initial purchase of the un-adapted vehicle will incur VAT at the standard rate but the component parts of the adaptations and the labour involved will be 0% rated for VAT.

When claiming VAT relief on a vehicle you must supply the Vendor with a VAT Disability Exemption Declaration form.

For further information on VAT relief for disabled people see:

Download the VAT Disability Exemption form Here.