VAT Exemption
Some products sold by Incontinence Choice may qualify for VAT relief and can be supplied at the zero rate of VAT.
Although this relief is sometimes described informally as “VAT exemption”, the applicable products are legally zero-rated for VAT. This means VAT is charged at 0% when all relevant conditions are met.
Eligible incontinence products
HM Revenue & Customs allows eligible incontinence products supplied to disabled people for their personal or domestic use to be zero-rated.
For normal retail quantities, individual customers purchasing eligible incontinence products will not usually be asked to provide a written eligibility declaration.
HMRC expects us to obtain a declaration or other supporting evidence when a customer orders more than:
- 200 disposable pads;
- 50 washable pads;
- 5 collecting devices; or
- 10 pairs of waterproof or leak-proof underwear.
Where required, the declaration will be presented during checkout.
Products must be purchased for the personal or domestic use of a disabled person. Products purchased for business use or for resale do not qualify for this relief.
Other disability-related products
Some other products may qualify for zero-rating where all of the following apply:
- the customer or intended user is chronically sick or disabled;
- the particular product is legally eligible for VAT relief; and
- the product is being purchased for the disabled person’s personal or domestic use.
Products for which this conditional relief may be available will be identified on the relevant product page.
Who is considered chronically sick or disabled?
For VAT purposes, a person is chronically sick or disabled if they:
- have a physical or mental impairment with a long-term and substantial adverse effect on their ability to carry out everyday activities; or
- have a condition that the medical profession treats as a chronic illness.
A person does not have to be registered as disabled or receive disability benefits.
The relief does not apply merely because someone is elderly. It also does not normally apply to a temporary injury or incapacity, such as a broken limb.
A parent, spouse, guardian or other representative may purchase qualifying products on behalf of an eligible person.
Personal or domestic use
Personal or domestic use means that the products are intended for the use of a particular disabled individual.
The relief does not generally apply to products:
- used for business purposes;
- purchased for resale;
- made available for general use by a group of people; or
- supplied for use in care or treatment provided by a hospital, nursing home or similar institution.
Separate rules may apply to qualifying charities.
Purchases by charities
Certain supplies to eligible charities may qualify for zero-rating where the products will be made available to disabled people for their personal or domestic use.
Charitable status or a charity registration number does not, by itself, make every purchase eligible. We may ask the charity to provide an eligibility declaration and sufficient information about the intended use of the products.
Eligibility declarations
Where a declaration is required, we will ask for information including:
- the name and address of the eligible person or charity;
- confirmation of the relevant disability, chronic condition or charitable status;
- confirmation that the products will be used for a qualifying personal or domestic purpose.
An eligibility declaration is separate from accepting an order or agreeing to our general terms. Completing a declaration does not automatically make a product eligible: both the customer and the product must meet the legal conditions.
We retain declarations and supporting evidence as part of our VAT records and may provide them to HM Revenue & Customs where required.
If the conditions for zero-rating are not met, VAT will be charged at the applicable rate.
Incorrectly charged VAT
If you believe that VAT has been charged incorrectly, please contact us:
Email: customerservices@incontinencechoice.co.uk
Telephone: 01952 913112
Contact form: https://www.incontinencechoice.co.uk/contact/
Where appropriate, we will correct our VAT records and refund VAT that was charged incorrectly. HMRC does not refund this VAT directly to the customer.
Further information
More information is available in HMRC’s guidance: