Please read the following important information
You are now able to fill out an online form to claim your vat exemption without having to send or fax forms.
All products featured on the nebulisers direct website are available "vat free" (e rated). Your entitlement to this depends on your status as either an individual or charity who are generally accepted for vat exemption for personal use where the item is solely used to treat a disability or where the funds to purchase these items come from a "charitable source".
Who can purchase VAT exempt goods and services?
The VAT exemption of goods and services for disabled people depends in part upon the status of the recipient. VAT exemption applies to the following persons:-
- handicapped people
- charities - see paragraph
- certain eligible bodies
Supplies to handicapped people
You would not have to pay the VAT if you or the person you are buying the good for:
is 'chronically sick (have a long-term illness) or disabled', and
the goods and services are purchased or acquired for their personal or domestic use.
What does 'chronically sick or disabled' mean?
A person is 'chronically sick or disabled' if he/she is a person:
With a physical or mental impairment which has a long-term and substantial adverse effect upon his/her ability to carry out everyday activities;
With a condition which the medical profession treats as a chronic sickness, such as diabetes; or
who is terminally ill.
It does not include a frail elderly person who is otherwise able-bodied or any person who is only temporarily disabled or incapacitated, such as with a broken limb.
If a parent, spouse or guardian acts on behalf of a 'chronically sick or disabled' person, your supply is treated as being made to that 'chronically sick or disabled' person.
The term 'disabled' is used throughout this notice and means 'handicapped' or 'disabled or chronically sick'.
Supplies to Charities
Supplies of goods listed to charities will qualify for vat relief where the goods are made available by the charity to a disabled person for their personal or domestic use -
There are certain other circumstances when supplies of goods listed will qualify for vat relief - see notice 701/1 charities and notice 701/6 charity funded equipment for medical, veterinary etc uses.
What is a Charity?
Bodies in england and wales have charitable status when they are registered, excepted or exempted from registration with the charity commission, or bodies anywhere in the united kingdom which are treated by the Inland Revenue as charitable. Not all non-profit making organisations are charities.
There is no distinction for VAT purposes between those charities registered with the charity commission and those that are not required to register. However, unregistered charities claiming zero-rating may need to demonstrate that they have 'charitable status'. This may be achieved from their written constitution or by the recognition of their charitable status by the inland revenue.
Further information on VAT relief's available for charities is contained in notice 701/1 charities.
Supplies to Eligible Bodies
Supplies purchased by certain healthcare bodies and hospitals with charitable funds may qualify to be zero-rated under separate rules. For more information see vat notice 701/6 charity funded equipment for medical, veterinary etc uses.
What does for 'domestic or personal' use mean?
'domestic or personal' use means that the supply must be made available specifically for the use of an eligible individual (or series of eligible individuals).
excluded from the terms 'personal' or 'domestic', and not eligible for vat relief are:
goods and services used for business purposes;
supplies made widely available for a whole group of people to use as they wish. for example, a stair lift in a charity building for the use or convenience of all chronically sick or disabled persons who might use the building would not qualify for relief. this is because the charity is making the lift available for the general use of all those people who might require it, rather than for the personal use of specified individuals;
goods and services supplied to:
- an in patient or resident of a hospital or nursing home;
- any person attending the premises of a hospital or nursing home for care or treatment; and
- any other person or commercial establishment where the goods are for use by, or in connection with, either of the above, where the items are intended for use in the care or treatment provided in the hospital or nursing home. for more information see notice 701/31 health and care institutions.
Can anyone pay for the eligible goods and services?
As a general rule, yes.
There are, however, special rules that apply to supplies of certain types of equipment paid for or arranged at the behest of the national health service, hospitals or certain other institutions that provide nursing or residential care. For further information on these rules please see notice 701/31 health and care institutions.
What if a customer is unable to make a written declaration?
It may not always be possible for a disabled person to sign a declaration (for example, if the person is a child or unable to write). In such cases, the signature of a parent, guardian, doctor or another responsible person is acceptable on the declaration.
Products available for exemption include aids designed or modified solely for use by people with a disability, as well as products designed for the care or treatment of incontinence. Such products are only available at zero-rate vat when purchased directly by an individual for their personal use, or when purchased by a registered charity for use by the disabled person.
In order for us to meet your/our obligations to customs & excise, and in order to avoid paying vat you will be required to sign a simple declaration form that you are eligible to receive goods with the vat exempt from payment. Please note we are only able to exempt vat from the actual goods, all delivery charges will attract vat as normal.
If you are eligible for vat exemption relief
- persons qualifying for vat exemption must fill the vat declaration form provided at the checkout before completing the order. If you are not eligible for vat exemption relief
- we are obliged to charge you the full 20% vat on the whole of your order.
How to proceed:
- On checkout you will need to tick the VAT exemption option. This will take you to the VAT exemption form, please complete the form in full. This will be sent along with your order when checkout is completed
- If there are any queries we will contact you by telephone or email.
- It is important that the item is being used for personal use and not for use in an institution or for resale.
- Recent government legislation dictates that we cannot supply care homes or certain other businesses with vat exemption. For more information on these developments please visit ( http://www.hmce.gov.uk )