What is VAT exemption and which medical conditions qualify?

For those living with long-term illnesses or disabilities, the cost of essential supplies and equipment can quickly add up. Fortunately, the UK government offers a VAT relief scheme for products designed for disabilities or medical needs. If you qualify, you’ll be able to purchase certain essential goods VAT-free – meaning you could benefit from huge savings.

In this guide, we’ll explore what VAT exemption is and which products and medical conditions qualify. We’ll also discuss how to claim VAT relief on your next purchase of mobility or living aids. 

What is VAT exemption?

VAT (Value Added Tax) is a tax levied on most goods and services sold in the UK. VAT exemption, or VAT relief, refers to certain products or situations where VAT is not charged. There are various categories that are exempt from VAT, including some related to disabilities and medical needs.

If you have a long-term disability or chronic illness, you will usually qualify for VAT relief on products purchased to help manage your condition. This means you’ll be able to get them cheaper than you would otherwise. For example, if the item costs £100, you would normally pay £120 (£100 plus 20% VAT). With VAT relief, you’d only pay £100. 

VAT exemption also applies to the installation, repair and maintenance of these products, as well as spare parts and accessories. 

Which products qualify for VAT relief?

To qualify for VAT relief, the product must be designed or adapted for disabilities or severe health conditions. This may include things like:

• Medical appliances, such as leg braces and blood glucose monitors
• Some hearing and vision aids 
• Specialist clothing and footwear
• Wheelchairs, ramps and other mobility aids
• Class 2 mobility scooters
• Hoists and transfer aids
• Stair lifts
• Rise and recline chairs
• Sanitary products, such as commode chairs and incontinence aids
• Emergency alarm call systems

Importantly, both your disability and the product itself must meet the eligibility criteria to qualify for VAT relief. You can only get the discount if you’re purchasing the goods for your own personal or domestic use.

What medical conditions qualify for VAT relief?

You can only get products VAT-free if you have a long-term health condition or disability. HMRC defines this as "a physical or mental impairment which has a long-term and substantial adverse effect on your ability to carry out everyday activities." You don’t need to be registered as disabled, nor do you need to qualify for any other benefits. 

Conditions that may entitle you to VAT relief can include:

• Chronic illnesses
• Mobility issues
• Cognitive impairments
• Severe mental health conditions
• Sensory disabilities, such as blindness or deafness

The specific diagnosis is less important than how it affects your life. The main criteria is that your condition significantly limits your ability to perform normal day-to-day activities. It must also be expected to last for at least 12 months.

Temporary injuries, like broken limbs, usually don’t count. Additionally, being elderly does not automatically qualify you for VAT relief, if you are otherwise healthy and able-bodied. 

Does osteoarthritis qualify for VAT relief?

Osteoarthritis is a degenerative joint disease that can cause chronic pain, stiffness and limited mobility. As a long-term condition that significantly impacts daily activities, osteoarthritis usually qualifies for VAT relief on eligible products. 

For people living with osteoarthritis, products that help reduce joint strain and improve mobility and safety can be extremely beneficial. Some examples of VAT-relief-eligible items that may be helpful include grab rails, rise and recline chairs, adjustable beds and walking aids.

Does COPD qualify for VAT relief?

Chronic Obstructive Pulmonary Disease (COPD) refers to a group of lung conditions that make it difficult to breathe. Common symptoms include shortness of breath, wheezing and other respiratory issues that typically progress over time. Because COPD significantly limits respiratory function and normal daily activities long-term, it typically qualifies for VAT relief.

There are many eligible health and wellbeing products that can help improve quality of life for those living with COPD. These may include things like pulse oximeters, nebulisers and positioning aids designed to ease breathing at night.

How do I claim VAT exemption for disabled people?

If you have a disability that entitles you to VAT relief, you’ll receive the discount at the point of sale. It’s important to note that it isn’t a VAT refund scheme – you can’t get money back after making a purchase.

When shopping for a qualifying product, you will need to inform the supplier that you are eligible to buy it VAT-free. This usually involves filling out a form with your name, address and declaration of entitlement due to disability. The supplier will then waive the 20% VAT and keep your signed form on file for their tax records. You’ll have to complete a separate declaration for each company you buy from.

Head to Complete Care Shop today to browse our complete range of mobility, wellbeing and daily living aids. If you have any questions about the VAT relief process or whether you qualify, don’t hesitate to contact us.