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Paying VAT on items for a group of disabled people?

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vikki_louise
vikki_louise Posts: 2,358 Forumite
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edited 28 May 2013 at 12:14PM in Disability money matters
Hello, I wonder if anyone could advise please? If a charity buys lots of disability related items from America to be given as gifts to disabled children, do they have to pay VAT? If it makes any difference the person ordering them happens to be disabled/on DLA.
Thanks :beer:


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  • rogerblack
    rogerblack Posts: 9,446 Forumite
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    What do you mean by 'disability related'.
    Neglecting the charity matter.
    To be eligible for no VAT due to disability, in the general case, something has to be specifically adapted for the needs of the disabled.
    So, for example, a comfy chair wouldn't count - even if for use for the disabled - a wheelchair might.
    http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_CL_000184&propertyType=document#P47_2887

    This is complicated if the person importing the devices is not doing it as a business, because it would normally not be possible to reclaim VAT paid - the VAT has to not be charged at the beginning.
    If the shipping service is regarded as the 'importer' - then they are the ones that would have to declare it as exempt, and they are unlikely to do so, if a general delivery service.
  • vikki_louise
    vikki_louise Posts: 2,358 Forumite
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    Thanks, they are things that clip onto IV poles and funky designs to hold NG tubes in place
    Best wins in 2013 £200 and Mini iPad. 2014 no wins. 2015 2 nights 5* hotel with £300 vouchers plus £1150 Harrods gift card
    Rehome an unwanted prize or gift with a seriously ill child through Postpals.co.uk
  • Brassedoff
    Brassedoff Posts: 1,217 Forumite
    edited 3 May 2013 at 12:11AM
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    Hello, I wonder if anyone could advise please? If a charity buys lots of disability related items from America to be given as gifts to disabled children, do they have to pay VAT? If it makes any difference the person ordering them happens to be disabled/on DLA.
    Thanks :beer:

    Unless you can be more specific I cannot see you getting a correct answer. You have to look at the two regular disabled rules. Most believe they are "entitled" to zero rate goods, but they don't fit the disabled definition by HMRC as "chronic" or "significantly long term" disabled or "terminal". Illnesses or conditions don't fit the strict sense of what the HMRC term, apart from Diabeatis

    On the intrastat when you import certain items you can reclaim VAT once paid. Should you give the items away, you take the hit. Should you supply items at cost, the recipient pays VAT if the qualify again. Over 60's pay 5% VAT on a flat rate.

    There are some major changes coming in, where you will have to get a certificate of qualification of zero rate. You will only be able to get the certificate/card that allows you to get goods at zero rate If you get HRC & HRM, you will have to provide the DLA/PIP certificate to the HMRC to get it. So I can see the ballon going up there as its part of the tightening the system that currently is open to rife abuse.

    Retailers will only give you goods at zero rate if they can take a copy of the micro card that the HMRC will issue.
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