VAT and Converted Vehicles
At Brotherwood we are often asked the rules regarding VAT and converted vehicles. A detailed information booklet regarding this can be obtained from HM Customs and Excise, however some of the more pertinent issues are as follows.
Q : What are the conditions for zero rating?
A : The vehicle must be adapted to enable the disabled wheelchair user to enter, drive or otherwise travel in the vehicle and must have vehicle seating for no more than 12 persons. The adapted vehicle must be for the domestic or personal use of the disabled individual. This may also include vehicles that are used by the disabled wheelchair user in his work capacity provided this is incidental to the vehicles main use as a private vehicle. You could not obtain the vehicle zero rated and then use it as a Taxi.
Q : Do second hand converted vehicles qualify for VAT exemption?
A : There is no VAT payable on second hand converted vehicles provided the criterion for the vehicle being exempt in the first instance is adhered to.
Q : Can I have the vehicle serviced exempt of VAT?
A : Converted vehicle purchased exempt of VAT are also exempt of VAT for servicing, repair or maintenance. The garage providing the service will require an eligibility declaration to be completed and signed. Brotherwood provide these to all purchasers of their converted vehicles both new and used.
Q : Are the prices on the Brotherwood printed ‘Price List’ and Website inclusive of VAT?
A : All Brotherwood price lists exclude VAT because a disabled individual or registered charity are exempt and they represent 99% of vehicle purchases. The exception would be a converted vehicle purchased for business use in which case the client would be advised that VAT is to be applied to the price shown.
Q : Can I claim VAT back on a vehicle if I have one converted?
A : You cannot claim VAT back on a vehicle once it has been paid. The cost of the conversion however would be zero rated.
Q : What are the conditions for zero rating?
A : The vehicle must be adapted to enable the disabled wheelchair user to enter, drive or otherwise travel in the vehicle and must have vehicle seating for no more than 12 persons. The adapted vehicle must be for the domestic or personal use of the disabled individual. This may also include vehicles that are used by the disabled wheelchair user in his work capacity provided this is incidental to the vehicles main use as a private vehicle. You could not obtain the vehicle zero rated and then use it as a Taxi.
Q : Do second hand converted vehicles qualify for VAT exemption?
A : There is no VAT payable on second hand converted vehicles provided the criterion for the vehicle being exempt in the first instance is adhered to.
Q : Can I have the vehicle serviced exempt of VAT?
A : Converted vehicle purchased exempt of VAT are also exempt of VAT for servicing, repair or maintenance. The garage providing the service will require an eligibility declaration to be completed and signed. Brotherwood provide these to all purchasers of their converted vehicles both new and used.
Q : Are the prices on the Brotherwood printed ‘Price List’ and Website inclusive of VAT?
A : All Brotherwood price lists exclude VAT because a disabled individual or registered charity are exempt and they represent 99% of vehicle purchases. The exception would be a converted vehicle purchased for business use in which case the client would be advised that VAT is to be applied to the price shown.
Q : Can I claim VAT back on a vehicle if I have one converted?
A : You cannot claim VAT back on a vehicle once it has been paid. The cost of the conversion however would be zero rated.
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