Too widely available

The taxpayer supplies mobility products and aids for the elderly. The goods were zero rated on the basis that they were for use by the infirm.

HMRC disagreed so the taxpayer appealed.

Correspondence from the taxpayer’s own suppliers was not conclusive as to the goods qualifying for zero rating. The items were not solely for the use of individuals with disabilities or chronic illnesses although they would help them. They were designed to be fitted on to an existing bed and were not a mechanical bed within VATA 1994 Sch 8 group 12 item 2(g).

The tribunal agreed with HMRC that the goods were available to anyone and should therefore be standard rated.

The taxpayer’s appeal was dismissed.

Advisers acting for a business that sells products for disabled people...