VAT Exemption on Disability Vehicle Adaptations: What You Need to Know

Purchasing or adapting a vehicle for a disabled person can feel overwhelming, especially when it comes to understanding costs. One area that often causes confusion is VAT exemption on disability adaptations.

The good news? Many vehicle adaptations qualify for 0% VAT, which can make a significant difference to the overall price. Here, we explain how VAT exemption works, what qualifies, and how you can apply.

What is VAT exemption on vehicle adaptations?

In the UK, if a vehicle is being adapted specifically for a person with a disability, those adaptations may be zero-rated for VAT. This means VAT is not charged on the qualifying adaptations, helping to reduce the overall cost of making a vehicle accessible.

VAT exemption applies only to the adaptation element.

What types of adaptations are VAT exempt?

VAT exemption usually applies to adaptations that are necessary due to a disability. These commonly include ramps or hydraulic lifts, hand controls, hoists and transfer seats, among others

If the adaptation will enable someone to travel safely and comfortably, it is likely to qualify.

What is not covered by VAT exemption?

While the adaptations themselves may be VAT-free, some elements are not eligible, including factory-fitted options not related to a disability, servicing, MOTs and general maintenance.

Only the disability-specific adaptations qualify for VAT relief.

Who can claim VAT exemption?

VAT exemption can apply if the vehicle is being adapted for a disabled driver, a disabled passenger, or a parent, family member, or carer purchasing the vehicle on their behalf

The vehicle must be for personal or domestic use, not commercial purposes.

How do you apply for VAT exemption?

The process is straightforward and handled as part of the purchase:

1. The customer completes a VAT exemption declaration form
2. The declaration confirms the adaptations are required due to a disability
3. In most cases, no medical evidence is required

Once completed, the qualifying adaptations are invoiced at 0% VAT.

You can find the VAT exemption declaration form here.

Why this matters

VAT exemption can result in significant savings, making accessible vehicles more affordable and helping people maintain independence, mobility, and freedom.