Are Mobility Batteries for Disabled people zero VAT Rated

This is the internationally recognized symbol for accessibility (Photo credit: Wikipedia)

Mobility batteries and VAT

The subject of zero VAT on goods for the disabled and handicapped has always been a grey area. This article is only related to the UK, I am not sure what other countries do to offer zero VAT to their disabled people.

In pre- internet days these types of mobility batteries were sold through a network of mobility shops, which were normally the place where the disability scooter or wheel chair were originally bought. This did not prove to be a problem as far as VAT was concerned ,as the shop staff could see and would usually know the disabled person personally, and therefore the zero VAT would have being granted without risk of any type of dishonesty or non-handicapped people trying to claim the VAT when they are entitled to it.

Now that the internet is here, many battery companies have sprung up selling mobility scooter batteries online. This has been good for the consumer because the competition has lowered the price of these special sealed AGM and Gel batteries that this specialist equipment requires. There are also specialist batteries that are used on stair lifts and machines that lower disabled people into the bath. These usually use a 12volt 12amp sealed battery that needs regular replacement.

The problem with the internet selling of these types of AGM batteries is the honesty of the public as to whether they are actually disabled or not. According to the VAT guidelines the definition of disabled is…

3.1 Who can purchase zero-rated goods and services?

The zero-rating of goods and services for disabled people depends in part upon the status of the recipient - see paragraph 2.1. You can only zero rate supplies to:

    handicapped people - see paragraph 3.2;

    charities - see paragraph 3.3; and

    certain eligible bodies - see paragraph 3.4.

As a supplier you must take reasonable steps to check that your customer is eligible to receive your goods or services at the zero rate.

3.2.1 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’”.

In most case the person wanting to buy a mobility battery will be registered disabled, but on occasions the husband or wife will want to organise the battery purchase, under the VAT rules this is perfectly alright to do. The part of the advice about batteries for the disabled comes under 4.8 Parts and accessories, which is stated as follows…

4.8 Parts and accessories

You can zero rate parts and accessories which you supply to an eligible customer as defined in paragraph 3.1 provided that they were designed solely for use in or with goods which themselves qualify for VAT relief as described elsewhere in this section.

Parts means integral components without which the equipment is incomplete. Accessories mean optional extras which can be used to improve the operation of the equipment, or enable it to be used, or to be used to better affect, in particular circumstances. 

 Mobility batteries are not standard batteries

VAT relief does not apply to general use items such as standard batteries, even if these were purchased to be used within an item which is eligible for VAT relief. If the batteries were solely designed to operate within the eligible item however, they would be eligible for relief.

The batteries that are designed for these types of scooters are specialist AGM and GEL batteries and in my opinion cannot be classed as standard batteries. This type of battery is made to be able to dis-charge and re-charge at very high and low rates. This is to give the wheel chair user the ability to go further and return on a fully charged battery, before re-charging is required, a so called standard battery, the type used on a car, is only a starter battery and cannot be used on a wheel chair. When we at www.BatterieOntheWeb.co.uk sell a mobility battery online and the customer claims zero VAT we will download them an exemption form to sign and return or send a form by normal mail. This is a declaration that they are in fact disabled and are legible to buy a mobility battery with zero VAT. Newer mobility scooters and wheelchairs will be fitted with another specialist battery the Lithium-Ion battery.

Post written by Eric Roberts