Light boxes and zero rate VAT - advice please

bundance

I hope this is in the right forum. I purchased a light box at the end of last year from this site.

http://www.britebox.co.uk/contact.php

Seasonal Affective Disorder sufferers get the light box at zero rate VAT
for £169.

I do not suffer From Seasonal Affective Disorder, but I do suffer from depression, so was prepared to pay for the item at standard rate VAT.
The site said it had a VAT exemption statement, on the "View basket" page, but I could not access it - see blue italicised text below.

"VAT Exemption (SAD Products)
Our SAD light therapy boxes are certified as class IIa medical devices. Seasonal Affective Disorder is recognised by HM Customs and Excise to be a debilitating condition and as such if you have any of the symptoms, and you are buying light therapy for your own personal use or for a member of your family, you are entitled to sign (tick) the VAT Exemption statement on the View Basket page. This is a self certification and you do not need your doctor to sign any forms for you."

I emailed the company to tell them I wanted the item, but as I didn't suffer from Seasonal Affective Disorder I did not want to claim VAT exemption to which I was not entitled. I phoned the company and they said not to worry.

I then got a form through my letterbox from the company which read:

"I am sorry for the inconvenience but i order to receive your britebox energise as zero rated, for SAD we require you to sign this form.
It goes on to say:

I declare that I am suffering from Seasonal Affective Disorder, and that I am receiving from Mary Read Ltd the britebox energise (phototherapy) equipment which is being supplied to me for personal use, and I claim relief from the Value Aded Tax under Group 12 of Schedule 8 to the Value Added Tax act 1994."


I am not happy to sign the form to claim VAT exemption, and am even prepared to pay the remaining VAT as I do not want to get my self into trouble.

Please could anyone advise what to do in this instance.

thank you (ps - sorry for the italicised last paragraph, I could not get the text to go back to normal)


thank you

arborlinden

Your message does not make sense. You say you have purchased at end of last year and then go on to say that the company will not supply until you sign the vat exemption form. which is it

Apollonia

As depression is one of the major symptoms of SAD you probably should buy at the VAT free price. Also, if you don't suffer from SAD why would you need a lightbox?
I suspect this item is not liable for VAT at all because it is what it is, IYSWIM.

bundance

arborlinden wrote: »

Your message does not make sense. You say you have purchased at end of last year and then go on to say that the company will not supply until you sign the vat exemption form. which is it

sorry for the confusion.
They have supplied me with the item, and I paid the zero rated price, but they need me to sign a declaration form, which I am not happy to sign, as it is to claim exemption from VAT, which I am not entitled to as my depression is not Seasonal Affective Disorder.

As depression is one of the major symptoms of SAD you probably should buy at the VAT free price. Also, if you don't suffer from SAD why would you need a lightbox?
I suspect this item is not liable for VAT at all because it is what it is, IYSWIM.

Apollonia

My depression is bad all year round, (can be a bit worse in summer) and these light boxes help non SAD depression sufferers, as well as SAD sufferers. The item was £210 at the standard rate, and SAD sufferers were told they had the chance to tick the vat exemption box in the "view basket" section.
I could not find such a box, (I wanted to keep it un-ticked) so I phoned the company, and they just said not to worry.

I think they are covering themselves, by sending me this form, but as I dont want the VAT man breathing down my neck, I would rather pay the difference than sign the form dishonestly.

Bronnie

arborlinden wrote: »

Your message does not make sense. You say you have purchased at end of last year and then go on to say that the company will not supply until you sign the vat exemption form. which is it

"Please be nice to moneysavers ":money:


It doesn't actually say that. If you read it carefully, the company tells OP " i order to receive your britebox energise as zero rated". That's not to say OP hasn't already taken delivery of it and the company isn't just trying to tidy up their records at the end of the tax year in the light of the customer's insistence that she's not entitled.


OP, I would say you don't have to worry as the VAT exemption is based on suffering from any of the symptoms and not on an official diagnosis of SAD; presuming you do suffer from at least one of the symptoms. However the wording of the company's form does not reflect the official VAT exemption statement. They should reword it for you to sign and you should point this out to them.

Don't worry!



We pay enough VAT as it is, certainly do not pay any more if you don't have to!

JasonLVC

The disability exemptions are very 'loose' in terms of HMRC compliance.

The exemption applies to equipment suitable to relieve a disability and can be purchased exempt of VAT by either the sufferer or a member of the sufferer's family. Becuase of this definition, it is impossible for HMRC to audit and verify every single sale.

Generally speaking, provided the actual goods are 'eligible' (which a lightbox is), then HMRC will automatically assume the sale is to an appropriate person and HMRC have no real way to verify this. Provided the supplier has a signed certificate from the customer, that is where the trail will end.

This isn't about being dishonest, this is about the system, which allows an individual to make an exempt purchase no questions asked becuase it is impossible to check. So personally, I'd take the VAT exemption offering.

If this will keep you up at night then simply pay the full amount + 17.5% VAT on top and ask the supplier to provide you with a VAT invoice afterwards.

I've helped clients buy narrowboats zero rated becuase 'the wife' is disabled and would be using the boat, same with cars adapted for disabled use and the whole thing is done on a trust basis to be honest with you and no checking other than making sure the supplier has a signed form.

JasonLVC

Apollonia wrote: »

As depression is one of the major symptoms of SAD you probably should buy at the VAT free price. Also, if you don't suffer from SAD why would you need a lightbox?
I suspect this item is not liable for VAT at all because it is what it is, IYSWIM.

I sort of agree. The lightbox is a standard rated (17.5%) item unless it is sold to an eligible person, whereupon it becomes zero (0%) rated.

The reality is that HMRC do not check individual people and so provided the goods are the sort of thing disabled people need then the zero rating/exemption can take place with no questions asked.

JasonLVC

bundance wrote: »

I think they are covering themselves, by sending me this form, but as I dont want the VAT man breathing down my neck, I would rather pay the difference than sign the form dishonestly.

The supplier can only zero rate with a signed certificate from the customer. 99.99% of their customers probably opt for the zero rating (exemption) and the supplier probably never had anyone who actually wanted to pay VAT before so for you to make the purchase VAT free and then ask to be charged VAT is probably causing their computer to melt down.:D

The VATman will not breath down your through. Whether to charge VAT or not is the supplier responsibility and so at worse, HMRC would inspect the supplier and find they were not happy with a number of sales/certificates. HMRC would just want the VAT from the supplier and the supplier would then just write to you and ask for the VAT to be paid to them. You'll never see the VATman and this is only theoretical becuase as I've already posted, HMRC do not go and check certificates.

Could you imagine how many millions of certificates there would be in a year for wheelchairs, batteries, hoists, hearing aids, scooters, etc, etc, etc. This is why they don't bother to check....after all, why else would someone buy a disabled aid if it wasn't for the relief of a disability of some kind?

lill

hunny, its zero rated tax because it is medical equipment, not 'just' for SAD exemption. you are using it to relive a medical condition. you ARE entitled to the 0% tax.

bundance

Thank you all for your helpful replies.
I will just sign the certificate and send it off.

kind regards