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HMRC internal manual

VAT Relief for Disabled People Manual

Installation services

The law

Item 7 Schedule 8, Group 12, which reads as follows:

  1. The supply to a handicapped person or to a charity of services necessarily performed in the installation of equipment or appliances (including parts and accessories therefore) specified in item 2 and supplied as described in that item.

What installation services are covered by Item 7?

Zero-rating under item 7 (see VRDP43000 - ‘The law’) is confined to services integral to the installation of the equipment or appliances such as:

Eligible for VAT relief Not eligible for VAT relief
* Plumbing in a sanitary appliance * Building of a structure to “house” the installation
* Wiring up an electrically adjustable bed  
* Installing a chair lift  

The relevant item 2 goods (see VRDP05100) are zero-rated whether supplied as part of the installation service or separately as goods.

Where parts and accessories are used, these are eligible for zero-rating provided they are part of the single supply of installation services.

Parts and accessories supplied separately are eligible for relief under item 2(h) - see VRDP05100.

See ‘Notice 701/7 Reliefs for disabled people’.