VAT exemption?

stefos

Hello,

I have recently been told that if you are the owner of a car that has obviously been modified to accommodate somebody who is disabled you can ask to be exempt from VAT be it a new tyre, service or parts.

Does anybody know if Is this true?

B_G_B

Not true. Only the parts to repair the adaption for the disabled person are vat exempt. All normal parts are vat payable.

D_M_E

Send a letter to HMRC and ask them, they should know.

I don't think it's true either but it might be as a lot of stuff bought by or for the use of disabled persons is generally VAT exempt - for example batteries used in boats, if bought for the boat by the boat owner are VAT rated, but the exact same batteries are used in mobility scooters and/or electric wheelchairs and in this case are VAT exempt.

So if the parts and/or tyres were used to keep a disabled person's vehicle roadworthy then they might be exempt, particularly if said vehicle was also registered with DVLA as disabled tax class at zero licence fee.

Reminds me of the case about 5 years ago where a dealer got disabled people to buy cars such as Ferraris, Lambourghinis, Aston Martins etc then because the purchasers were disabled reclaim the VAT paid on them then the dealer would sell them on at near full price.

Eventually went to court and they got done I think for VAT fraud.

B_G_B

D_M_E wrote: »

....for example batteries used in boats, if bought for the boat by the boat owner are VAT rated, but the exact same batteries are used in mobility scooters and/or electric wheelchairs and in this case are VAT exempt.

Not true.
https://www.gov.uk/hmrc-internal-manuals/vat-relief-for-disabled-people/vrdp39000

Complete set of guidance notes.
https://www.gov.uk/hmrc-internal-manuals/vat-relief-for-disabled-people

D_M_E

Thanks for the links, B_G_B - used batteries as an example as been buying them from mobility shop and had to provide evidence of disability, shop zero rated them for VAT for disabled use.

Your links show this is not the case and they should have been VAT added - now seems to me they are storing up a big tax bill for themselves.

Links also show your post#2 is the correct advice, so it's pointless contacting HMRC.