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HMRC internal manual

VAT Relief for Disabled People Manual

Motor vehicles [items 2(f) and 2A]: is the vehicle adapted by the supplier of the vehicle?

Dealerships rarely carry out adaptations or conversions. This work is usually sub-contracted to specialist converters. For the vehicle to be zero-rated:

  • any necessary conversion work must be done before the vehicle is supplied to the customer; and
  • the dealer must be the recipient of the conversion services (although any guarantees may be given to the vehicle customer).

If a business ensures the conversion is carried out before it supplies the vehicle to the disabled person or charity, the whole supply may be zero-rated, provided it receives one payment to cover the cost of both the vehicle and the conversion. This applies even if the supplier arranges for someone else to carry out the conversion.