.png)
.png)
From 1 January 2012, the concessionary arrangement that allows a motor vehicle supplied to a wheelchair user to be treated as a zero rated supply for VAT purposes, if it was adapted shortly after it was supplied to the individual, will no longer apply.
Zero rating continues to apply on vehicles that are adapted before they are supplied, provided all other conditions for zero rating are met.
It is ‘therefore likely that garages will in future recommend to their customers that any alterations are made as part of the specification of the purchase,’ said Ruth Corkin of James Cowper chartered accountants.
The concession that allowed VAT zero rating on the supply of parts and accessories designed solely for use in, or with boats that are designed or permanently and substantially adapted for use by disabled persons will no longer apply from 1 January.
The concession has allowed parts and accessories that are not covered by the scope of the relief to be treated as zero rated.
HMRC accept they do not have the discretion to allow this treatment, and it is not possible to put it on a statutory basis, which would contravene EU law.
