About VAT Exemption
VAT exemption allows chronically sick or disabled people to buy eligible items at 0% VAT thus saving them money. Disabled people do not have to pay VAT when they buy equipment that has been designed solely for disabled people, or on the adaptation of existing equipment so they can use it.
Also, VAT is not charged on certain services provided to disabled people, including some building work to adapt a disabled person’s home and the hire of disability equipment like wheelchairs.
Goods and services on which you do not have to pay VAT are often referred to as ‘zero-rated’ or ‘eligible for VAT relief’. The rules about VAT relief for disabled people can be complex, but we’re here to make life easier.
What proof do we need to provide?
In order to waive VAT on your purchase, the government requires a simple declaration to be made as to the nature of your disability at the time of ordering. No proof of your disability need be shown to any party at any time.
It’s very easy to claim VAT relief, all we need to know is the name, address of the person the item is for. We don’t need a doctor’s letter or any reference numbers.
The above information can be provided during the online checkout.
All prices displayed on the Orange Badge website are exclusive of VAT as we almost exclusively supply those who qualify for VAT exemption.. If you do not qualify, it is available to be added at checkout.
Who is eligible for VAT relief?
VAT law states that you must be ‘chronically sick or disabled’ to qualify for VAT relief.
A person is ‘chronically sick or disabled’ if they either:
- have a physical or mental impairment that has a long-term and severe effect on their ability to carry out everyday activities
- have a condition that doctors treat as a chronic sickness – like diabetes, for example
- are terminally ill
A person with a temporary injury like a broken leg would not qualify, nor would a frail older person who is otherwise well and not disabled.
Things to Remember
We do NOT decide if an item is or isn’t exempt and we don’t make any more or less money if we charge you VAT or we don’t charge you VAT. If you do not tick the VAT exemption box, or you are not eligible for VAT relief, we are obliged to charge you the full prevailing VAT on the whole of your order.
Not all products are eligible for VAT relief, so we are obliged to charge VAT at the prevailing rate for those products that are not VAT exempt. Postage charges are not eligible for VAT relief.
You can find out more about VAT relief for disabled people on the HM Revenue & Customs website. If you cannot find the answer to your questions there, you can call their Charities Helpline, which covers VAT relief for disabled people on 0300 123 1073