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ForumForumDiscussionsDiscussionsNarcolepsy and ...Narcolepsy and ...VAT back?????VAT back?????
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 13/04/2012 10:03
 

Had a very good question from a member about VAT and beds that has left me confused and I wondered if any forum reader had tried this

There is a VAT exemption for disabled people for certain goods and services including beds. HMRC issue a list of things that can be claimed as VAT free for disabled people. The updated list (as of April 6th 2012) is on the HMRC website and beds are on there. However not just any beds but an adjustable bed designed for invalids. This is explained in Section 4.3 and the bed has to be either electrically or mechanically adjustable and have specific design features which distinguish it from a standard bed. So, according to the rules, no matter what the manufacturer says, a standard bed would not fill the role. However that could be there problems as if they think it does and takes the VAT off the problem lies with them.
Or does it lie with the purchaser? I would assume if the seller makes a mistake they have to pay the VAT but don’t know. Anyone with any ideas?
What do HMRC consider disabled? Happy to report this is very similar to the DLA structure. They say it has to be a chronic sickness which a medical professional treats - so you would get that ok, but they go on to say that it has to be a physical or mental impairment that has a long term (no problem with that) and substantial adverse affect on your ability to carry out daily activity. Does that mean someone that has narcolepsy but the drugs control it well and is able to work would not get the benefit?
So in conclusion on the face of it if a bed seller offer a non standard mechanical system for disabled people and your doctor writes a letter saying you would benefit from such a bed and you are being treated for a long term and substantial physical condition the manufacturers should offer you the bed VAT free.
However don't be surprised if the HMRC decide to challenge this, which may or may not be your problem. Final point if you don't need a mechanical bed don't buy one as they tend to be expensive at about 30% more than a standard bed. You could end up with 20% off a special bed that is still costing more than a standard one.
Lot of guess work there – though educated guesses of course! Help!
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 13/04/2012 12:30
 

The physical or mental thing with substantial and long-term effect on day-to-day whatever is (at least nearly) verbatim from the Equality Act, so I assume their rules are actually that it has to be a disability in terms of the EA (with one or two extra requirements). The EA specifies that treatment does not remove the protected characteristic if it must be maintained - if it would be likely to get worse again if treatment stopped, then you still have the protected characteristic.

I don't know this case specifically, but the general principle is that responsibility for collecting VAT lies with the seller. The place where the buyer is definitely liable in this case is certifying that they are disabled and the product they are buying is to help with it. I don't know how that general principle applies in this case, though. I imagine HMRC advice notes make it clear, if you can find the right one.

Lastly, the HMRC list is a list of examples (and counter-examples, IIRC, but I haven't looked for a while), not exhaustive. The general premise is that something is eligible for the VAT relief if it is specifically designed and made to help people who are disabled, even if it can be used by other people as well. If it's designed for general use but happens to help disabled people, it's not.

I'm not a lawyer or anything, I'm not trained in this, but I read things that interest me or that I'm curious about, and I tend to remember.

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