Many battery retailers offer batteries for disabled customers VAT free (well officially zero rated for VAT, which is pretty much the same thing to the layman).
In our eyes, it’s a great scheme as it seems only fair that those of us burdened with a disability over which we have no control should not have to pay tax in order to relieve our symptoms, or in the case of batteries get ourselves mobile.
However, as much as we’d like to, this isn’t something that we are able to offer as HMRC advice states that companies are only able to supply batteries zero rated for VAT if that company both supplies and fits the batteries in that single transaction.
This means that most customers either have to purchase from us and (unfairly) pay the VAT or alternatively have to buy at a mobility shop, where they pay no VAT but in most cases pay a fortune for the batteries!
We see this as a lose/lose for our potential customers as well as being grossly unfair.
We’d love to hear your thoughts on this too! Let us know in the comments below.
It does appear unfair but I would assume is the only way that you can prevent able bodied people purchasing at a Zero rated price. For instance my motorcycle battery (YTX-12BS) has been used at times in mobility equipment. I would love to purchase that Zero rated. I may then start purchasing them from you 🙂 but in the meantime have to be content with only purchasing car batteries from you. In the meantime maybe you can set up recognised installers, maybe clubs, etc, and the invoice is raised and paid at the point of install, or HMRC will accept an authorised installation statement following purchase, or accept orders placed via mobility clubs and organisations.
that rulling seems remarkably odd, since they don’t apply it to other items bought for medical necessaity – for example nobody fitted my light box – it was shipped to me and I plugged it in
an example is my blood check machine – that was supplied vat free and it came in the post
requiring fitting is frankly crazy (no joke) as so many disability and medical items are supplied tax free if used with a sign here type document
I would suggest you challenge the rulling since its been applied unfairly compared with other types of device
I suspect what is going on is simple discrimination, there is an assumption that being disabled your incapable of changing your own battery etc as if we were all over 90’s and infirm
I have been supplied batteries VAT free from the Internet no problem when I gave a completed VAT exemption form. So I don’t see why you cant. I just had to fill in my details and “declare that I am chronically sick or disabled by reason of: (MS in my case) and then state whether goods or services & description like this: “I claim relief from VAT of these * goods / services ??????? ( Notice 701/7 VAT Relief’s for Disabled people Aug. 02)”
I can give you a copy of the form if you want it.
Hi Jon,
Thanks for your comment.
Many internet retailers previously offered the service of VAT exemption by self declaration, but Current HMRC advice is that we cannot do that.
HMRC state that batteries can only be zero rated when supplied and fitted, which clearly can’t be possible online.
Thanks for the reply Jo, all these sellers must be doing something because all I do is order the batteries and they despath them when they receive the declairation form from me. No problems so far but maybe that will change which would be very inconvenient.
Jon,
the people you have bought from leave themselves open to a penalty of 1) having to pay the VAT not charged and 2) a fine of up to 100% of the VAT not charged…up to them of course, but I can understand a legitimate company not wanting to take the risk.
the reason HMRC don’t allow it is a disabled person buys the batteries and then passes them on to someone who is not disabled, or an able bodied person just fills in the form and claims to be disabled. as the same battery used in a mobility scooter can be used in any other product they can not police this issue so they charge VAT.
The distinction between supply only and supply and fitting has nothing to do with the customers eligibility. The rules (Notice 701/7) state quite categorically that standard batteries in themselves are not eligible for zero rating because they are not designed specifically for use by disabled people (section 4.8) and therefore supply of batteries is not VAT exempt. However section 5.4 states that items supplied “during the course of repair and maintenance” can be zero rated. Hence supply and fitting is VAT free. A fine distinction no doubt but thats the ruling as it stands.
What you’re saying is correct – but the important distinction here is that these are not standard batteries. These are batteries designed exclusively for mobility purposes.
Afraid not, these batteries AGM or gel are used in many industries, marine, golf buggies, leisure, uninterruptable power supplies etc. It is up to the manufacturer to demonstrate to HMRC that they have been developed exclusively for the mobility industry. If you’ve managed to find a manufacturer who has got the OK from HMRC well done, let me know who it is because I haven’t.
I too purchase items both in an actual shop and on line and have them at zero VAT and has nothing to do with supply AND fit. I believe that the person you spoke to at HMRC was not as knowledgeable as they should be. It would be interesting to see this go before a court as failure to make a reasonable adjustment for a disabled person.
TJ
Hi Trevor. Unfortunately the person at HMRC is correct… we have looked into this in detail and the batteries MUST be supplied and fitted to be zero rated. You’re correct that some online retailers are offering batteries zero rated on a supply only basis, but they are contravening the guidelines and are at risk of having to pay the VAT themselves!
Finding one who’d be willing to bother with the paperwork might be hard, it’s no never mind to them if we get charged VAT or not, we’re paying it, not them.
However, I suspect Concorde Battery would be in with a chance of doing so with their “Chairman” range, as they have their “Lifeline” and “Sun Xtender” ranges aimed at those other markets with remarkably similar specs for all three “brands”. Not that they’d sell many, even VAT exempt they’d be dearer than the competition with little if any discernible gain in specification.
How about if you request your customer to provide a certificate, from their doctor, confirming the disability and the product usage. Clearly multiple certificate requests would ring a few bells.
From the HMRC:
Parts and accessories…… You can’t buy a standard battery VAT free for use in your mobility scooter but you can buy a VAT-free battery that was designed only to be used in mobility scooters.
My wheelchair repairer reclaims the vat that they are charged and tell me that i am getting them vat free.The price for the battery’s on the invoice are vat free but nearly twice the price that they can be purchased for and then a fitting charge.Just another lets make money out off the disabled
Sorry, but this is disgraceful. Times are hard enough without HMRC cashing in on our misfortune too!
Just because some unscrupulous bastard took advantage of the system.
Government has a lot to answer for.
What if each customer became a “volunteer” battery fitter for Tanya and then they would effectively supplied and fitted by Tanya!
Just a thought.
I’m with Adam on this one – this is disgraceful! Disabled people using mobility scooters are reliant on them for their independence. Being able to get out and about is part of their mental well being and health. HMRC should be making better use of their time and effort chasing people for tax with money in offshore accounts and corporates who owe millions rather than taxing the weakest and most vulnerable in society.
As for their claim that ‘a disabled person buys the batteries and then passes them on to someone who is not disabled’ etc. Really? With the best brains in the country this is not difficult to manage. Every person registered disabled could be issued a VAT exemption number (verified with health professionals) that they can use to claim VAT exemption on such products. Anybody purchasing 10 batteries per year to flog off will automatically be flagged up on the system, as opposed to someone steadily purchasing 1-2 batteries every 3-4 years. What’s to stop a disabled person buying 10 disabled showers every year and flogging them off in the same way as they can equally be used by able bodied people too?
I think most people above don’t realise that they actually ARE paying VAT on their batteries, it’s just advertises as ‘VAT free’ as that sells products. Look at the mark up in price and you’ll see the difference.
I have been registered disabled for a lot of years, and I think the VAT people should have this register to consult, and would know who was legally claiming back VAT for a mobility product such as batteries for wheelchair or scooter.