When do we pay VAT?
There is VAT on almost everything, here’s our lowdown on VAT. The clothes we buy, the electricity we use, even the meals we treat ourselves too in a restaurant. VAT is a tax added to consumable goods and services by the government. Currently sitting at a whopping 20% its inclusion into the price of items we buy could mean the difference between being able to afford something and not.
How is it defined what items VAT applies to?
VAT is a unique thing though in the sense that determining whether or not it applies can simply come down to how something is categorized. Cold takeaway foods are zero-rated for VAT, but hot takeaway items such as McDonalds or KFC are subject to the standard rate of 20%. Crisps such as Walkers or McCoys are subject to VAT but maize or corn based snacks like Doritos aren’t. Brand new disability vehicles are VAT free as is the cost of their conversion, but if you buy a second-hand one you have to pay VAT.
Affordable or not?
This fact about buying a disability vehicle returns us nicely to my previous point. VAT can be the difference between being able to afford something or not. Whilst you may think that buying a used car is cost saving, in the long run, could a brand new, bespoke car be cheaper? Would the cost to have adaptations made, which include a 20% VAT markup, push your perfect vehicle over budget?
Can we see the VAT?
In most cases, VAT is incorporated into the price we pay and only alters with changes in government but when it comes to special circumstances like those relating to buying a wheelchair accessible vehicle, for example, there are advantages to be had if you know where to look.
For more information on the VAT implications to disability vehicles or the implication of this on adaptations, contact the lovely people at Southern Mobility Vehicles: http://www.southernmobilityvehicles.co.uk
We hope that our article giving you the lowdown on VAT has help, however if you have any questions please put them in the comments below.
Be the first to comment on "The Lowdown on VAT for Disability Vehicles"