It is a shame C&E see fit to slap VAT on this product. It is an excellent 
piece of software.

Perhaps dis-forum (and other disability discussion groups) should lobby 
Whitehall for the lifting of VAT on any technological aids that help 
disabled people. You never know we might get a good reception since we have 
had a change of government  :-)

In the end they are only taxing themselves cos a lot of equipment is 
purchased using DSA's that they have paid anyway. If the amount of the DSA 
is increased by VAT well then it only costing the LEA's more. This can be 
compared to the fact that cars purchased through the motability scheme are 
VAT free.

Andrea Elliott
 ----------
From: dis-forum
To: [log in to unmask]
Subject: V.A.T Policy on Dyslexia Pruducts
Date: 21 May 1997 15:18

Sight and Sound Technology sells a variety of products to the Blind, =
Visually Impaired and Learning Disabled communities. It was with some =
interest that I read the post from Celia Cockburn relating to VAT-free =
Texthelp.

For the past fifteen years we have been supplying products to the Blind =
and Visually Impaired and, provided the user is 'registered blind', we =
have been able to provide products free of VAT. Nothing new in this !!

At the beginning of this year we launched Omni 3000 (software for =
Learning Difficulties which includes Dyslexia). Having first hand =
experience of humourless Customs and Excise Inspectors, I thought that I =
should check out the status of VAT on products of this kind. I duly =
approached my local VAT office and was told that there was no =
registration scheme for sufferers of Dyslexia (unlike a blind person) =
but that, provided that the potential user could provide a GP's report =
and an educational psychologist's report substantiating the disability, =
it was acceptable to zero rate the product.

About a week later, I had occasion to contact a different Customs and =
Excise office (VAT Policy, Charities and Healthcare Branch, New King's =
Beam House, 22 Upper Ground, London SE1 9PJ) on an unrelated topic and I =
took the opportunity to seek further ratification of the zero rated =
ruling. I was absolutely stunned to be told that my local office had =
been incorrect in advising me to zero rate !  I was then advised that a =
VAT tribunal had ruled against a case brought by The Dyslexia Institute =
and that Dyslexia was not regarded as a disablility. Not wishing to =
incur the wrath of Customs and Excise, and it can be extremely painful =
and expensive so to do, I had no choice but to apply VAT on sales of =
Omni 3000.

Such a decision has three consequences, a) our product is at a =
commercial disadvantage, b) the potential user is penalised. The last =
consequence is maybe a little more drastic in that, if a VAT Inspector =
determines that VAT has been incorrectly applied then he has the right =
to collect any unpaid amounts. Essentially, this would be recoverable =
from the supplier but the supplier may be financially embarrassed (not =
only is the unpaid amount required but also, interest and fines)  and be =
forced to recover such sums from the customer.=20

If my understanding of this ruling is incorrect, I would dearly love to =
know !!!!!

Mervyn Robertson
Sight and Sound Technology
http://www.sightandsound.co.uk






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