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HMRC internal manual

VAT Relief for Disabled People Manual

Building alterations [items 8 to 13]: the provision of a washroom or toilet in any building used principally by an eligible charity for charitable purposes [item 12]

For zero-rating under item 12:

  • the work must qualify (see VRDP11050);
  • the supply must be to an eligible charity; and
  • the building must be used principally by an eligible charity for charitable purposes.

Accordingly, Item 12 zero-rates such facilities in village halls, churches, and so on. It does not zero-rate the installation of toilets in a hospital. This is because hospital patients are not necessarily disabled and so the work is not necessary to facilitate the qualifying room for the use of disabled people.

Similarly, zero-rating is not available where a building provides a washroom for disabled people, but is not itself used for charitable purposes - for example, where an eligible charity has use of a couple of rooms on one floor of a building which is predominantly used by other businesses. And - unlike items 10 and 11 - under item 12 zero-rating does not extend to bathrooms.