As much as it would be a relief if George Bell's letter from the
Charities and Healthcare Branch was the last word on the subject,
I doubt it is. The definition that zero rating applied to, and only to,
goods specifically designed for disabled people did apply around
then and for several years before. One or two companies supplying
products to the disability market came close to ruin by assuming
they could apply this to an entire PC system if it contained
disability-specific items. Their local tax office eventually caught up
and slapped a heavy bill on them.
From around 96 onwards another ruling appeared where tax could
be "averaged" over the complete system if it contained disability
specific items. I think the rate was around 4%. But this would
apply only to the system box and not to the screen or keyboard
which were seen as independent items.
Then on the 17 December 2000, a Tribunal for Customs and Excise
found in favour of a dyslexic student from Sussex University where
it agreed that even the leads connecting them were essential to the
integrity of the whole as without them the system box was
useless. It seemed all we had to do as DSA assessors was throw
a copy of a pretty affordable piece of disability specific software
into a PC system and save the taxpayer a fortune.
Whether this case modified the rules yet again I wouldn't know, but
Mick Trott came closest when he pointed out the importance of the
local VAT office. It really doesn't matter what head office says, we
are still in the Robin Hood era in respect to VAT with local tax
gatherers making up the rules to suit themselves as they go along.
As regards who pays, we do like LEAs to buy equipment on behalf
of students under the DSA scheme but provided students sign a
VAT exemption certificate it doesn't seem to matter who pays for
it. The issue is whether the purchase is on behalf of an
organisation or an individual.
Dave Laycock
Head of CCPD
Chair of NADO
Computer Centre for People with Disabilities
University of Westminster
72 Great Portland Street
London W1N 5AL
tel. 020 7911-5161
fax. 020 7911-5162
WWW home page: http://www.wmin.ac.uk/ccpd/
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