Can you claim and how does it work?
Does the product qualify?
HMRC allows the sale to be VAT free on goods that have been designed solely for disabled people. Our garden furniture range was originally designed solely for people with disabilities and sold exclusively within this sector, primarily to hospitals, councils and care homes. Making our own garden furniture available to all now means that whilst the products were designed for disabled, you don’t need to be disabled to buy therm. If, however, you are classed as disabled please read on to see if you would qualify for VAT relief.
Please note only our wooden furniture range that we make to specification is potentially eligible. Cushions etc. are subject to VAT.
Do I qualify?
HMRC provides certain reliefs for people who are ‘chronically sick or disabled’.
‘Chronically sick or disabled’ is defined in HMRC guidance as a person:
- with a physical or mental impairment that has a long-term and substantial adverse effect upon their ability to carry out everyday activities
- with a condition that the medical profession treats as a chronic sickness, such as diabetes
- who is terminally ill
- You will not qualify if you are only temporarily disabled or incapacitated, such as suffering from a broken leg or other temporary injury.
- You also will not qualify if you are elderly but are otherwise able-bodied and do not suffer any chronic conditions
Where your condition has a substantial long-term, adverse effect on your ability to carry out normal day-to-day activities, then you should be treated as disabled for VAT purposes. Having a blue badge indicates that you would be treated as disabled for VAT purposes.
What is Personal use
The goods and services that you are buying have to be for the disabled person’s personal or domestic use. HMRC’s guidance advises that this does not include use for business purposes. The legislation does not actually define personal use so it may be that some business use should not preclude relief. You should be aware, though, that HMRC could challenge any claim that such goods or services were purchased for personal or domestic use.
The goods or services must be just for your own use, not for use by anyone else. However, if you and your partner are both chronically sick or disabled and buy goods and services for both of you to use, then you will not have to pay VAT.
How do I claim VAT Relief?
If you qualify we simply don’t charge you VAT to start with.
You must complete this self declaration form and return it to us to confirm you’re eligable.
The form can be downloaded here