VAT exemption provides significant financial relief for chronically sick or disabled individuals, allowing them to buy certain items at 0% VAT.

This includes equipment designed specifically for disabled people, or costs for adaptations to make equipment usable for them. In some cases, VAT exemption also covers services aimed at supporting disabled people, such as certain building work to adapt a home or the hire of essential equipment like wheelchairs. 

The goal of VAT relief is to make necessary products and services more accessible by eliminating the extra costs. However, the rules can be complex and understanding them is key to ensuring the exemption is applied correctly.

A Key Point: You Don’t Have to Be the Purchaser to Qualify for VAT Exemption

An important fact often missed is that the VAT exemption can still be applied if you’re buying an eligible item as a gift for someone who qualifies. You don’t need to be the disabled person or have a chronic illness yourself; the only requirement is that the end user of the product meets the criteria for VAT exemption. So, if you’re shopping on behalf of a disabled friend or family member, you can still claim the VAT relief—provided the item or service you’re purchasing is eligible.

What Types of Goods and Services Are Eligible?

Items and services eligible for VAT relief are often termed "zero-rated" or "eligible for VAT relief." But keep in mind, not all items bought for disabled people are automatically exempt. To qualify, they generally need to:

1. Be designed solely for disabled people, or
2. Involve charges related to adapting equipment for a disabled user’s needs, or
3. Be services like specific building modifications to a disabled person’s home.

To find out which of our products qualify click here

What Proof is Needed? 

Claiming VAT relief is straightforward. When making a purchase, the government requires a simple declaration regarding the nature of the disability; you don’t need to provide formal proof or documentation at any stage. If you’re shopping online, many websites streamline this process for you. When shopping on Blue Badge Co’s website all you have to do is:

1. Create an account and opt to declare that the end user qualifies for VAT exemption.
2. Once logged in, all eligible purchases will be processed without VAT automatically.

Price Display on the Website

To keep things clear, VAT-exempt items are often shown with prices that include and exclude VAT. If you’re not logged in, you may see a reminder that logging in and declaring VAT exemption could save you the added tax.

Who is Eligible?

The law on VAT exemption specifies that a person must be “chronically sick or disabled.” Here’s how it’s defined:

• The individual has a long-term physical or mental impairment severely affecting their ability to carry out everyday activities, or
• They have a condition regarded as chronic, like diabetes, or
• They are terminally ill.

People with temporary injuries or generally frail but otherwise healthy seniors would not typically qualify for VAT relief under these guidelines. 

Important Reminders

• We Don’t Decide the Exemption Status of Products: VAT exemption eligibility is set by law, not the retailer. If a product is eligible, we apply the relief; if not, we are required to charge VAT.
• No Retroactive VAT Refunds: Once an order is confirmed, the price is set. VAT relief cannot be applied retroactively to past purchases, so make sure to declare VAT exemption during the purchase.

Where to Get More Information

For any questions or detailed guidance, the HM Revenue & Customs (HMRC) website provides extensive information on VAT relief for disabled people, Click Here You can also contact HMRC’s Charities Helpline, which covers VAT relief inquiries for disabled individuals.

HMRC Charities Helpline

Phone: 0300 123 1073 

Hours: 8:00 am - 5:00 pm, Monday to Friday (closed on weekends and bank holidays).

With VAT relief, disabled individuals can access essential products and services more affordably, and with this understanding, you can make sure that they benefit from the exemption even when you’re purchasing items on their behalf.