VAT Exemption for Mobile Phone

[Deleted User]

I read that some mobile phones are eligible for VAT exemption. I looked at the HMRC website (VAT NOTICE 701/7 – VAT RELIEF) and it looks as if I qualify. HMRC say that they do not refund VAT - the supplier provides the item free of VAT when the customer completes the appropriate form at the time of purchase. I downloaded the form and, as I am with Orange PAYG at present, I asked them about a phone which (I am told via the website) is eligible for the exemption.

Orange did not seem to know anything about it and said I should buy the phone and claim the VAT back afterwards. HMRC say this is not so. For my needs I think Doro Easy 610 PAYG from Orange would be very suitable for me - the Orange shop is local to me and they would set it up etc.

The problem is that they don't know about the VAT exemption at the point of purchase. If anyone has information I'll be grateful, thank you.

grumbler

Deleted_User wrote: »

Orange did not seem to know anything about it and said I should buy the phone and claim the VAT back afterwards. HMRC say this is not so.

I am no expert, but I think HMRC are right.
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_CL_000184&propertyType=document#P42_2494

Zero-rating works by the supplier not charging VAT.

The problem is that they don't know about the VAT exemption at the point of purchase. If anyone has information I'll be grateful, thank you.

Orange don't know even more basic things. However, my understanding is that they have no any obligations. It is up to retailer to sell eligible goods VAT-free if they want to offer lower prices. I think for Orange it is a real PITA to sell one phone VAT-free and then to sort out all formalities with HMRC. If so, you are highly unlikely to get anywhere with them.

[Deleted User]

Thank you, Grumbler. It doesn't sound too promising. Maybe I should look for a different provider from Orange. I thought of Orange because my present PAYG mobile 'phone is with them. I appreciate the time you have taken to reply.

reclusive46

All the mobile phone providers are going to be just as awkward to be honest.

Im_just_careful

They sell a wide range of the Doro phones.

They are unlocked and so can take any SIM.

[Deleted User]

Thank you all for your replies and advice. Disability and Dosh Forum contributors have also been really helpful. I'll do some homework. Of course the price is important but, most of all, I'll be delighted to find a mobile 'phone I can really hear - I'm afraid my hearing and other health issues aren't altogether straightforward!

Thank you all again.

Crimson

gas4you

Should be really simple for any provider to sell the specific phones VAT free.

They only have to enter the VAT free code on their tills or main computer.

All the paperwork is then done automatically within their VAT returns.

Other than a larger scale, no different to me as a small VAT registered company doing it eg on new build work that is VAT zero rated.

Jon_01

gas4you wrote: »

Should be really simple for any provider to sell the specific phones VAT free.

They only have to enter the VAT free code on their tills or main computer.

All the paperwork is then done automatically within their VAT returns.

Other than a larger scale, no different to me as a small VAT registered company doing it eg on new build work that is VAT zero rated.

In theory, yes.

In practice. (having use the Orange system) there's no way for anyone on the frontline to change the tax code on a sale. Its all preprogrammed.
I'm sure someone higher on the food chain could, but find them and getting them to actually do it would be another matter. . .

Buzby

I'm surprised you 'think it should be easy' - the issue, as outlined earlier, is that a standard non-modified phone remains a taxable entity regardless of who uses it. If a standard production handset that perhaps can boast only a larger display or large buttons would not in itself be a reason to make the supply zero-rated.

A specialist supplier however (who has a supply arrangement with a distributor) can do this, asfter making a formal declaration that it only supplied to those who genuinely fit the VAT-free profile. A high-street chain does not have this flexibility.

grumbler

Buzby wrote: »

A high-street chain does not have this flexibility.

Is, say, Lloydspharmacy not a high-street chain?

http://www.lloydspharmacy.com/en/info/VatReliefInformation

VAT Relief
VAT Relief for people with disabilitiesIf you have a disability or long-term illness, you may be able to buy some of our products without paying any VAT. The government allows certain products to be zero-rated for VAT purposes (i.e. no VAT needs to be charged) to reduce the cost of the practical products which you may need because of your disability. Here are some of the more commonly asked questions about the scheme:
Which products are eligible for VAT relief?
The scheme covers products which have been specifically designed to assist the daily living of people with a disability. We have marked these products <logo> VAT Relief so they're easy to spot.
Who qualifies for the VAT Relief?
You qualify for the relief if you have a disability or a long-term illness (but please note the definition of this below) and you're buying the product for your own personal or domestic use.
You don't have to buy the goods yourself. If your parent, guardian or spouse buys the goods or services for you, then you won't be charged VAT.
What counts as a long-term illness or disability?
For VAT purposes, you have a disability or long-term illness if you meet any of the following conditions:
•you have a physical or mental impairment which has a long-term and substantial adverse effect upon your ability to carry out everyday activities
• you have a condition that the medical profession treats as a long-term illness, such as diabetes
• you are terminally ill
So, you won't qualify if you're elderly but otherwise able-bodied, or if you're only temporarily disabled such as having a broken leg.
Which conditions are considered to be long-term illnesses?
You're eligible for the VAT relief if you have one of the following conditions:
Arthritis
Blind
Cardiovascular Disease
Deafness
Diabetes
Epilepsy
Heart Disease
Hypertension
Kidney Disease
Motor Neuron Disease
Multiple Sclerosis
Parkinson's Disease
Physically Disabled
Terminally Ill
Other
I am registered as disabled. Does this mean I am automatically exempted from VAT?
No. There is no blanket exemption from VAT for disabled people.
What counts as personal or domestic use?Personal or domestic use means that the goods or services are supplied for your own private use, rather than for business purposes.
Also, the goods or services must be just for your own use - not for use by anyone else, or for use by a group of chronically sick or disabled people in general.
Can a charity claim VAT Relief on products bought for an eligible person?
Yes, provided the product is to be used by a single eligible person, or series of eligible people, rather than being put to general use.
How do I know if I qualify?
If you feel you meet the qualifying conditions above, you can continue with your purchase and state that you are claiming VAT relief. Before checkout, we will ask you to provide details of your condition and to make a legally binding declaration that we may be asked to provide to HM Revenue & Customs. If you specify a condition not on the dropdown list of conditions, following your order a pharmacist will review your claim. If you don't qualify, we will contact you and offer you the opportunity to pay the VAT amount or to cancel your order.
Do I need to claim the VAT back from HM Revenue & Customs?
There's no need for you to contact HMRC, as the supply will be treated as zero-rated for VAT purposes if you qualify for the VAT relief. All you have to do is add the item to your basket and complete the short form and declaration. We'll then charge you the price excluding VAT at the checkout.
Where can I get more information about VAT Relief available for disabled people?
Full details can be found by searching for "Notice 701/7 VAT Reliefs for disabled people" at www.hmrc.gov.uk.

mobilejunkie

I really doubt any mobile phones would qualify for relief from VAT. They aren't specifically listed above and if they were eligible at least some of the dealers would use it in their marketing. i know that some products for registered disabled people may be excempt from VAT, but I would be surprised if a mobile phone (large keys or not) would be. I do stand to be corrected, however!