Nidd Valley Medical VAT Guidelines
In March 1994, HM Customs and Excise ruled that TENS machines are zero rated for VAT when purchased by a "handicapped person" for domestic or personal use. A "handicapped person" is defined in law to mean chronically sick or disabled. It covers anyone who is blind, deaf or dumb, or who is substantially and permanently handicapped by illness, injury or congenital deformity.
Therefore if your medical condition is long term and you are suffering chronic pain which requires you to use TENS for pain relief, then you are eligible for the supply of such equipment free of VAT.
The same rules apply to TENS consumables such as electrodes and leadwires which are supplied as part of the TENS treatment. However, spare batteries and battery chargers are not manufactured solely for use by handicapped persons, so these items are not eligible for zero rating , regardless of who they are supplied to.
Sometimes TENS machines are supplied for use by people suffering short term pain such as sports injury or childbirth. Such people are not regarded as "handicapped" for VAT purposes, and TENS supplied in these and similar circumstances continue to be taxable at the standard rate.
The VAT declaration
If you are eligible, it is necessary because of Customs & Excise rules, that you fully complete and sign a VAT declaration every time you place an order for TENS equipment or consumables. This declaration is incorporated into the Nidd Valley Medical Patient Order Form and is worded as follows:-(EXAMPLE ONLY)
Patient VAT declaration
Patient's name and address: ............................................................
I the above named patient, declare that I am chronically handicapped/disabled and I am suffering from: (Insert type of illness, e.g. arthritis) .................................................................................
I am receiving from Nidd Medical Ltd, TENS equipment and/or materials for my personal use at home. I claim that the supply of these goods is eligible for relief from Value Added Tax under Group 14 of the Zero Rate Schedule to the Value Added Tax Act 1983. I confirm that the equipment is being used under medical/physiotherapy guidance.
Patient's signature................................................. Date ...................
Group 14 of the Value Added Tax Act 1983 is the section which covers zero rating of medical equipment and aids for the handicapped. It states that medical or surgical appliances designed solely for the relief of a severe abnormality or severe injury are zero rated for VAT.
Use under medical/physiotherapy guidance is not part of the Customs and Excise ruling but we include it in the VAT declaration for your own protection. It ensures that you have consulted a doctor or therapist who will have advised you if there was any medical reason why you should not use TENS and that your condition has been diagnosed prior to using TENS.
Type of illness - this must be the specific illness as diagnosed by your doctor. "Back pain" or "headache" for example is not specific enough to be acceptable.
VAT guidlines for Charities
VAT exemption on TENS and consumables may also apply when supplied to a charity who will be making these products available to handicapped persons, by sale or otherwise, for their domestic or personal use. Where this is paid for out of charitable funds or from voluntary contributions, the goods are zero rated for VAT provided they are to be used for medical research, training, diagnosis or treatment.
In these cases a different type of VAT declaration is required. This is shown in Annex B of the VAT leaflet 701/7/86 "Aids for handicapped persons" published by HM Customs & Excise. We can supply an example declaration on request.
False Declaration
Finally, please be aware that there are severe penalties for making a false declaration. If you are in any doubt about your eligibility, you should get advice from your local VAT office before signing the VAT declaration. The Acupad Advisory service is also available to answer any further questions you may have.
