As a VAT registered business that specialises in wheelchair accessible vehicles, we are entitled to offer these vehicles free from VAT providing that certain eligibility criteria have been met and the adapted vehicle being purchased is for wheelchair users’ personal and domestic use.
To find out more and see if you could be eligible see the information below.
Eligible Vehicle for Zero Rated VAT
For a vehicle to qualify for VAT zero rating the vehicle must have been permanently and substantially adapted to suit the needs of a disabled wheelchair user. And has a carrying capacity of no more than 12 people (including the driver). All of the wheelchair accessible vehicles we sell at Michael Harraway Cars meet the HMRC eligible vehicle criteria.
Who can qualify for a VAT Free Wheelchair Accessible Vehicle?
• You are the disabled wheelchair user
• You are the parent, guardian, family member, or partner of a disabled wheelchair user
• A charity purchasing a qualifying vehicle that is made available to a wheelchair user
Who does not qualify for a VAT Free
Wheelchair Accessible Vehicle?
- Vehicles being purchased for commercial use such as taxi operators, and nursing homes can reclaim the VAT in the normal way if registered.
- Occasional wheelchair user.
- Any wheelchair user who has in the last 3 years previously purchased a VAT Free adapted vehicle. The 3 Year Rule
Normal wheelchair user/Occasion wheelchair user
For the wheelchair user to qualify for VAT relief they need to be considered to be a normal wheelchair user. A normal wheelchair user is any disabled person who normally uses a wheelchair to be mobile. Someone who only occasionally uses a wheelchair, or a temporary wheelchair user who has for example a broken leg, is not considered to be a normal wheelchair user and therefore does not qualify for the VAT relief.
There are circumstances that which a disabled wheelchair user does not use their wheelchair all the time but can still be considered as normally using a wheelchair. For example, a disabled person with a degenerative condition, such as multiple sclerosis, who uses a wheelchair only when their condition requires it or a lower-limb amputee.
What is the 3 Year rule?
From the 1st of April 2017, a new rule was introduced known as the 3-year rule. This new rule limits the wheelchair user to only one VAT free adapted vehicle in a 3 Year period. The wheelchair user can still purchase another vehicle, but they will need to pay the VAT. There is a certain condition whereby the 3 Year rule can be waived such as. (Supporting evidence will be required)
- The vehicle has been stolen
- The vehicle has been destroyed or damaged beyond the repair
- The wheelchair user’s condition changes making the vehicle no longer suitable. (subject to HMRC approval.)
How to claim VAT Relief on a Wheelchair Accessible Vehicle
To claim VAT relief on a wheelchair accessible vehicle either the wheelchair person or their nominated driver will need to complete the customer eligibility declaration form VAT 1615A and hand this to us. We will check the form and complete a short questionnaire to check your eligibility.
For more information regarding VAT relief for wheelchair users see HMRC VAT Notice 1002
All the used wheelchair accessible vehicles for sale at Michael Harraway Cars are listed exclusive of any VAT as most of our customers can purchase these vehicles VAT Free. Should you have any further questions about VAT relief on one of our vehicles then please feel free to contact us.