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VAT on Batteries!
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Anyone else here just love the mine field with regard to supplying Standard batteries for a stairlift?
I have previously phoned the HMRC helpline a few years ago and was told in no uncertain terms that I should charge VAT on batteries whether the user was exempt or not.
Until today that has been my understanding – if batteries aren’t bespoke then they are laible for VAT even when being replaced at a service or callout.
I was having a quick update of the HMRC site and I have come across this ……Section 4.9 says they are VAT liable but 5.5 says they aren’t, it would appear that if you fit the batteries they are VAT exempt (obviously providing the user is sick or disabled) but if you sell them over the counter for the user to fit themselves then they do incur VAT.
Anyone else managed to get a definitive answer.
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If the batteries are strandard of the shelf SLA then they must be fitted. If not there is no guarantee thet have been purchased for any particular lift or sole end user.
This is different for bespoke batteries as you say, but again, if not fitted, how is it known if they are intended for a specific end user. The Vat exemption is for a single Chronically sick and Disabled person, if the person is just elderly, VAT is chargeable, but at a reduced rate. Charities often think a Stairlift they are fitting in a stairwell for anyone to use also attracts at a Zero VAT rating.A problem in this competitive industry is as a supplier, we must purchase and pay HMRC VAT, but then have to Zero Rate our sales.
Less scrupulus may not bother and just look for maximum reveneue available to the to cover their costs with immediate effect as the competitive look to their next VAT quarter for VAT paid.Not exactly a direct answert to your post Kevin, but a little extra thrown in to the mix for a good healthy discussion.
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Yes …. competitive industry as you say, just wonder whether the deal between a supplier and an charity for the elderly will be looked into once they’ve finished with the EON deal.
That £1.2million they aim to raise for the charity in 2016-17 is coming out of someones pocket. -
I have been informed by several suppliers that we charge Vat for over the counter sales but zero rate for fitted batteries as long as the client qualifies
The Independent reported they were also looking into the Handicare deal with age concern
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