Zero Rating VAT for Boats Supplied to Disabled Person

In my experience of tax / VAT and boat issue, I have found that it is not always understood that when you supply a boat to a disabled person you can zero rate the sale. HMRC explain that zero rating applies if:
•the boat is permanently and substantially adapted
•the adapted boat is for domestic or personal use of the disabled person
•the adapted boat is supplied to disabled person
•you hold evidence from your customer or third party that the purchaser or intended user is eligible for the relief

HMRC continue, that in order to qualify as permanently and substantially adapted a boat should include all or most of the following adaptations to suit the disability of the disabled buyer:
•push down spring return taps
•kitchen adaptations
•wheelchair clamps and supports
•low windows, galley units and handrails
•special beds to suit the disabled person
•lifts and non-slip floors to accommodate wheelchair movement
•embarking and disembarking adaptations
•special washroom/toilet facilities accessible to the disabled person
•ramp for wheelchairs

If you are supplying boats you certainly should be familiar with HMRC’s website which explains VAT relating to boats in more detail.

Eamon McNicholas
Tax Barrister, Accountant

About Eamon McNicholas

Tax Barrister, Accountant
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