Guidance

Charity funded equipment for medical and veterinary uses (VAT Notice 701/6)

Find out when it's possible to get zero-rated supplies on medical and research goods and services that have been funded by charities.

• From: HM Revenue & Customs
• Published: 6 August 2014
• Last updated: 6 October 2023 — See all updates

1. Overview

1.1 What this notice is about

This notice explains:

• when goods and services purchased:

  • with charitable or donated funds by eligible bodies can be zero-rated

  • by a third party for donation to an eligible body can be zero-rated

• what is an eligible body for the purposes of this relief

• the conditions that must be met before you can zero rate goods and services

A separate supplement Charity funded equipment certificates (VAT Notice 701/6 supplement) is available, and contains sample declarations for completion when qualifying goods and services are purchased by, or for donation to, eligible bodies.

For details of other VAT reliefs on goods and services purchased by a charity, read How VAT affects charities (VAT Notice 701/1) and Goods or services supplied to charities (VAT Notice 701/58).

1.2 Who should read this notice

You should read this notice if you are, or if you represent a:

• hospital, health authority, research institution or one of the charitable bodies eligible for this relief

• person, organisation or group purchasing goods or services for donation to any of these

• business supplying qualifying goods or services to any of these

1.3 The law covering this notice

This notice is covered in part by the VAT Act 1994:

• section 30 provides that a supply is zero-rated if it is specified in Schedule 8 to the Act

• schedule 8, Group 15 provides that certain supplies of qualifying goods and services to an eligible body, or to a person for donation to an eligible body, are zero-rated

1.4 Definition of handicapped or disabled

The VAT law refers to people who are ‘handicapped’ and defines this as ‘chronically sick or disabled’. Some of these terms are no longer in general use and can sometimes cause offence. These terms are used in this notice only where it is essential to accurately reflect the wording of the law.

2. Zero rating goods and services bought with charitable or donated funds

2.1 The basic conditions for zero rating

Goods and services are zero-rated when these conditions are met:

Condition	Description
1	The goods and services are purchased either: by an eligible body — read section 3 for donation to an eligible body — read section 6.
2	The supply is of either: qualifying goods or services — read paragraph 4.1 the repair and maintenance of qualifying goods
3	None of the restrictions detailed in paragraph 3.6 apply
4	If the supply is of medical, scientific, computer, video, sterilising, laboratory, or refrigeration equipment, this equipment is being purchased to be used by an eligible body mainly for medical or veterinary research, training, diagnosis or treatment — read paragraph 4.3
5	Where the goods or services are being purchased by an eligible body, they are paid for using charitable or donated funds — read section 5
6	The purchaser provides the supplier with a valid declaration of eligibility or sufficient evidence to demonstrate eligibility for the relief — read paragraph 8.2

Before zero rating any supplies of goods or services, you may wish to consult the checklist for suppliers in section 9.

2.2 Other VAT reliefs available to charities

As well as those mentioned in this notice, other goods and services purchased by a charity may qualify for zero rating. Further details can be found in How VAT affects charities (VAT Notice 701/1) and Goods or services supplied to charities (VAT Notice 701/58).

3. Eligible bodies

3.1 Bodies eligible to purchase qualifying goods and services at the zero rate

Subject to all of the other conditions in paragraph 2.1 being met, these bodies can purchase qualifying goods at the zero rate:

• certain health bodies — read paragraph 3.2
• research institutions whose activities are not carried on for profit — read paragraph 3.3
• certain charitable institutions — read paragraph 3.4
• any person, group or organisation that is purchasing qualifying goods for donation to one of the eligible bodies specified in paragraph 6.1

3.2 Health bodies eligible to receive qualifying goods and services at the zero rate

The health bodies that can purchase qualifying goods at the zero rate are:

• NHS trusts
• other hospitals whose activities are not carried on for profit — read paragraph 3.3
• special health authorities in England
• health authorities, special health authorities and local health boards in Wales
• health boards in Scotland
• health and social services boards in Northern Ireland
• clinical commissioning groups
• the Common Services Agency for the Scottish Health Service
• the Northern Ireland Central Services Agency for Health and Social Services
• the Isle of Man Health Services Board

3.3 When the activities of a hospital or research institution are carried out on a not for profit basis

A hospital or research institution carries out its activities on a not for profit basis when it meets both of these conditions:

• condition 1 — it cannot, and does not, distribute any profit achieved
• condition 2 — it applies any surplus that arises from supplies of hospital or research services to the furtherance of its objectives

3.4 Charitable institutions eligible to receive qualifying goods and services at the zero rate

3.4.1 Charities that are eligible bodies

A charitable day centre is an eligible body when it:

• does not exist primarily as a place for social or recreational activities
• provides care or medical or surgical treatment, where over an extended period of time the majority of the recipients are chronically sick or disabled people — read paragraphs 3.4.3 and 3.4.4

A charitable day centre or care establishment may still be an eligible body if, for a temporary period, chronically sick or disabled people form less than 50% of the recipients of care or treatment services, provided that over the extended period, the majority of recipients are chronically sick or disabled (examples include charitable physiotherapy centres for disabled children, and charitable centres that run rehabilitation or training classes for disabled adults).

Only qualifying goods used for an eligible purpose can be zero-rated to charitable day centres — read paragraph 3.6

Any other charitable establishment is an eligible body when it:

• provides institutional care, or medical or surgical treatment, where the majority of the recipients are chronically sick or disabled people — read paragraphs 3.4.3 and 3.4.4
• is approved, licensed or registered under the relevant social legislation with the appropriate regulatory body for care standards or is exempted from obtaining such registration by the relevant legislation

Examples include charitable hospices and residential care homes.

Only qualifying goods used for an eligible purpose can be zero-rated to these charitable establishments — read paragraph 3.6 for restrictions.

A charitable domiciliary care provider is an eligible body when it provides these services to disabled people in their own homes:

• medical
• personal
• nursing care

For more information read paragraphs 3.4.4 and 3.4.5.

Only certain qualifying goods can be zero-rated to charitable domiciliary care providers — read paragraph 3.6 for restrictions.

Any charity is an eligible body when it:

• provides rescue or first aid services for humans or animals
• provides transport services mainly to disabled people or has as its sole purpose and function the provision of a range of services for, or on behalf of, chronically sick or disabled people

Examples include charities established to:

• provide care or welfare services to disabled people
• lobby on behalf of disabled people
• fund medical research into the causes, prevention or cure of disablement

3.4.2 Bodies that are not eligible to purchase qualifying goods and services zero-rated under this relief

Day centres, residential care homes or providers of home care services are not eligible:

• if they are not charities
• where over an extended period the majority of the recipients of care provided are not chronically sick or disabled people

Any charity that is not an eligible body may still purchase certain goods and services zero-rated under separate VAT reliefs. For further details read How VAT affects charities (VAT Notice 701/1) and Goods or services supplied to charities (VAT Notice 701/58).

3.4.3 Care, medical or surgical treatment

This includes protection, treatment, supervision, control or guidance that is provided to meet medical, physical, personal or domestic needs of an individual. Care or treatment will usually involve some personal contact between the provider and recipient. For example:

• helping a person with daily personal needs such as bathing, dressing, feeding or toileting

• medical or surgical treatment

• nursing sick or injured patients in a hospital, hospice or nursing home

• looking after or supervising vulnerable people

For the purposes of this relief, catering, laundry and other services that do not require direct contact with the recipient are not care or medical or surgical treatment.

3.4.4 Chronically sick or disabled

Chronic sickness is a condition regarded as such by the medical profession.

Disability is a physical or mental impairment that has a substantial and long-term adverse effect on a person’s ability to carry out day-to-day activities.

Frail elderly people who are not disabled, or people whose mobility is temporarily impaired by short-term illness or injury are not chronically sick or disabled for the purposes of this VAT relief.

3.4.5 Medical, personal or nursing care

This includes medical treatment and the sort of care that a nurse might carry out or supervise — such as washing or feeding a patient, helping a patient out of bed, and administering drugs.

It does not include assistance with general domestic tasks such as cooking, cleaning or shopping.

3.5 Animal charities that are eligible bodies

Animal charities are eligible bodies if they provide rescue or first aid services to animals, or are animal hospitals providing ‘in-patient’ facilities.

Animal clinics or surgeries are not eligible bodies for the relief unless they’re part of an animal hospital, or are run by a charity that also provides rescue or first aid services.

3.6 Zero rating of qualifying goods or services purchased by any eligible body

There are restrictions on the qualifying goods that these eligible bodies can purchase zero-rated:

• charitable day centres or charitable establishments providing care or medical or surgical treatment
• charitable domiciliary care providers

These restrictions also apply when the goods are purchased for donation to one of these eligible bodies.

3.6.1 Charitable day centres or charitable establishments providing care or medical or surgical treatment

Zero rating applies only when qualifying goods or services are for use within the day centre or care establishment.

Goods or services purchased for a more general use are not zero-rated under this relief.

3.6.2 Charitable domiciliary care providers

Zero rating applies only to medical equipment that is used in the course of domiciliary care parts or:

• accessories of such medical equipment
• repair or maintenance of such medical equipment

Zero rating is not available to domiciliary care providers for any other qualifying goods or services. Only qualifying goods used for an eligible purpose can be zero-rated to charitable day centres — read paragraph 3.6.

4. Qualifying goods and services

4.1 Goods and services supplied to an eligible body that qualify for zero rating

Subject to the restrictions on use detailed in paragraph 3.6, some goods and services are zero-rated when purchased or hired by an eligible body using charitable or donated funds. These include:

• equipment purchased mainly for medical or veterinary research, training, diagnosis or treatment:
  • medical equipment — paragraph 4.2.2
  • scientific equipment — paragraph 4.2.3
  • computer equipment and certain software — paragraphs 4.2.4 and 4.2.5
  • video equipment — paragraph 4.2.6
  • sterilising equipment — paragraph 4.2.7
  • laboratory equipment — paragraph 4.2.8
  • refrigeration equipment — paragraph 4.2.9
• parts and accessories for use in or with any of this equipment — paragraph 4.5
• ambulances and parts or accessories for use in or with ambulances — paragraphs 4.4 and 4.5
• certain goods for use by a disabled person — paragraph 4.6
• certain motor vehicles — paragraph 4.7
• certain rescue equipment when purchased by, or for donation to, a charity providing rescue or first aid services — paragraph 4.8
• certain resuscitation models for use in first aid training — paragraph 4.9
• repair, maintenance or installation of qualifying goods, and any goods supplied in connection with this repair, maintenance or installation — paragraph 4.10

When a charity purchases goods and services that are not detailed, zero rating under a separate VAT relief may still apply. For further details read How VAT affects charities (VAT Notice 701/1) and Goods or services supplied to charities (VAT Notice 701/58).

4.2 Equipment that can be zero-rated when purchased by an eligible body

4.2.1 Definition of equipment

‘Equipment’ is defined as items designed for or used for one of the specific qualifying purposes. Generally, ‘equipment’ will be durable in nature, although specific items that are disposable in nature, such as syringes, may be ‘equipment’ depending on their intended use.

These items are not considered equipment and do not qualify for zero rating, even when supplied to, or for donation to, an eligible body:

• substances — including materials such as liquids, powders, sheets, pellets, granules that are consumed in the course of training, research, diagnosis or treatment are not equipment. However, substances directly used for testing or mixing with other substances may qualify for zero-rating under a separate relief when supplied to certain charities. Further information can be found in How VAT affects charities (VAT Notice 701/1)

• clothing — except specialist clothing such as reusable lab coats, scrubs and gowns

• goods consumed when using equipment, such as stationery, fuel, ink, oil, paper, and cleaning and sterilising fluids. However, these may qualify for zero rating if used as part of repair, service or maintenance activity. Cleaning materials designed specifically for cleaning certain eligible equipment (and not for a generic cleaning purpose) that is vital for the operation of that equipment may qualify as a ‘part’ under paragraph 4.5.1

Personal protective equipment (‘PPE’) designed for a generic purpose (and for the general purpose of protecting the user from aerosols or hazardous materials, for example) is not eligible as equipment. Only items that have been designed specifically for medical or surgical use such as masks, gowns and gloves are eligible. All other categories of PPE are not equipment and not eligible for relief under this provision. PPE may qualify as an accessory to eligible equipment where PPE enables the equipment to be used or used to better effect. Read paragraph 4.5.2.

4.2.2 Medical equipment

Medical equipment is equipment (read paragraph 4.2.1) that has features or characteristics that identify it as having been designed for a medical (including dental) purpose or function, such as the diagnosis or treatment of patients.

This covers a wide range of goods, from simple items like bandages and tongue depressors, to complex machinery such as x-ray machines and scanners.

General use items used to equip a medical facility, such as a television purchased for use in a hospital ward, are not medical equipment.

Medical equipment may only be zero-rated when it is purchased or hired mainly for medical or veterinary research, training, diagnosis or treatment — read paragraph 4.3.

4.2.3 Scientific equipment

Scientific equipment is equipment designed to perform a scientific function (read paragraph 4.2.1). This includes precision measuring equipment and analytical equipment such as thermometers, weighing machines and spectrometers.

Equipment that is not designed to perform a scientific function, but merely works on a scientific principle, is not scientific equipment.

Scientific equipment may only be zero-rated when it is purchased or hired mainly for medical or veterinary research, training, diagnosis or treatment — read paragraph 4.3.

4.2.4 Computer equipment

Computer equipment includes computer hardware such as servers, screens, keyboards and disks.

Machinery or other equipment that is either operated by computer or has computerised components, is not computer equipment.

Computer equipment may only be zero-rated when it is purchased or hired mainly for medical or veterinary research, training, diagnosis or treatment — read paragraph 4.3.

4.2.5 The rules that apply to computer software

Computer software is zero-rated when purchased by an eligible body solely for use in medical research, diagnosis or treatment.

Zero rating does not apply to computer software or programs that are purchased:

• for a purpose other than medical research, diagnosis or treatment

• by a person, body or organisation other than an eligible body — even if the software is purchased for donation to an eligible body

4.2.6 Video equipment

This includes video recording and playback equipment.

Video equipment may only be zero-rated when it is purchased or hired mainly for medical or veterinary research, training, diagnosis or treatment — read paragraph 4.3.

4.2.7 Sterilising equipment

This includes autoclaves and other specialised equipment using steam or other high temperature processes.

Microwave ovens and other cooking appliances are not sterilising equipment, even if they can be used to sterilise. Sterilising fluid is not equipment, and does not qualify for zero rating, even when purchased by an eligible body.

Sterilising equipment may only be zero-rated when it is purchased or hired mainly for medical or veterinary research, training, diagnosis or treatment — read paragraph 4.3.

4.2.8 Laboratory equipment

Laboratory equipment is equipment that is designed or intended for use in a laboratory (read paragraph 4.2.1). This includes equipment such as:

• test tubes and other laboratory glassware or plasticware

• bunsen burners

• ovens or furnaces

• fume cupboards

• biosafety cabinets

• microtomes

• cryostats

• laboratory benches

• specialised sinks

• catchpots

These are not laboratory equipment:

• items not intended to be used to equip a laboratory even when these are used to equip a laboratory such as:

  • cupboards, lockers, seats, other furniture
  • generic hazardous substance storage cabinets and chemical spillage containment kits

• substances — including materials such as liquids, powders, sheets, pellets, granules that are consumed in the course of training, research, diagnosis or treatment are not equipment. However, substances directly used for testing or mixing with other substances may qualify for zero-rating under a separate relief when supplied to certain charities. Further information can be found in How VAT affects charities (VAT Notice 701/1)

• goods consumed in the course of using the equipment, including substances such as chemical reagents, medicines and cleaning and sterilising fluids except where used as part of repair and maintenance or installation activity. However, cleaning materials designed specifically for cleaning certain eligible equipment (and not for a generic cleaning purpose) that is vital for the operation of that equipment may qualify as a ‘part’ under paragraph 4.5.1

4.2.9 Refrigeration equipment

This includes all cooling and freezing equipment, whether designed for industrial, domestic or any other purpose.

Refrigeration equipment may only be zero-rated when it is purchased or hired mainly for medical or veterinary research, training, diagnosis or treatment — read paragraph 4.3.

4.3 Medical or veterinary research, training, diagnosis or treatment

Medical, scientific, computer, video, sterilising, laboratory, or refrigeration equipment can only be zero-rated when purchased by an eligible body mainly for use in one of these ways:

(a) Medical or veterinary research. This means original research into human or animal disease and injury.

(b) Medical or veterinary training. This covers the training of doctors, nurses, surgeons (including dental and veterinary surgeons), and other professionals involved in medical or veterinary diagnosis or treatment. The overall programme of training should include the physical application by the students of theoretical knowledge. The teaching of subjects like biology and zoology, where the trainee has no practical medical or veterinary involvement with patients, is not medical or veterinary training for the purposes of this VAT relief.

(c) Medical or veterinary diagnosis or treatment. This is the diagnosis and treatment of a physical or mental illness or injury by a medical or paramedical practitioner or a veterinary surgeon.

Medical, scientific, computer, video, sterilising, laboratory, or refrigeration equipment purchased for any other use is not eligible for zero rating. This includes equipment purchased or hired for:

• general biological studies

• environmental research

• research into animal husbandry or food production

• general administration

• domestic or leisure purposes

Where the equipment is to be used partly for a qualifying use, and partly for any other use, it can be zero-rated only where its main use is one of those detailed in (a), (b), or (c) of this paragraph. In this context ‘main’ means real, substantial and continuing.

4.4 What an ambulance is

An ambulance is an emergency vehicle used for transporting sick and injured people or animals. This includes specially equipped air ambulances or watercraft.

To qualify for zero rating as an ambulance, the vehicle must have these features:

• the front and both sides must bear permanently fitted signs indicating that the vehicle is an ambulance

• in the case of an ambulance for transporting human patients, adequate door space for the loading of a patient on a stretcher

• seating to the rear of the driver (or pilot) for at least one attendant

• one or more stretcher that, with its handles extended, measures at least 1.95 metres, together with permanent fittings to hold this stretcher in position, this size specification applies only to ambulances that transport human patients — for ambulances that transport animals, any reasonable lifting or carrying equipment is acceptable

4.5 Parts and accessories

4.5.1 General

Subject to the other conditions in paragraph 2.1, parts or accessories can be zero-rated when purchased or hired by an eligible body predominantly for use in or with:

• medical, scientific, computer, video, sterilising, laboratory or refrigeration equipment that is used in medical or veterinary research, training, diagnosis or treatment — read paragraph 4.3

• ambulances — read paragraph 4.4

• the items for use by disabled people described in paragraph 4.6

4.5.2 Parts and accessories

Parts are integral components without which eligible equipment is incomplete and does not function.

Accessories means items that are not necessary for eligible equipment to be used, but which:

• improve the operation of the equipment

• enable the equipment to be used, or used to better effect

This would cover, for example, optional extras for eligible equipment, such as a printer for use with a computer, a specially designed camera for use with a microscope, insulated gloves for use with cryogenic equipment and a rack for holding test tubes.

Items that are not parts or accessories include:

• items that have independent uses, such as television sets

• accessories to accessories, such as ink for a printer

• substances — including materials such as liquids, powders, sheets, pellets and granules that are consumed in the course of training, research diagnosis or treatment are not a part or an accessory. However, substances directly used for testing or mixing with other substances may qualify for zero-rating under a separate relief when supplied to certain charities. Further information can be found in How VAT affects charities (VAT Notice 701/1). Note that cleaning materials designed specifically for cleaning certain eligible equipment (and not for a generic cleaning purpose) that are vital for the operation of that equipment may qualify as a ‘part’.

• goods consumed when using equipment, such as stationery, fuel, ink, oil, paper, and cleaning and sterilising fluids. However, these may qualify for zero rating if used as part of repair, service or maintenance activity. Cleaning materials designed specifically for cleaning certain eligible equipment (and not for a generic cleaning purpose) that is vital for the operation of that equipment can be considered a ‘part’ under this provision

4.6 Goods used by disabled people that may be zero-rated

Subject to the other conditions in paragraph 2.1 being met, zero rating applies to these items:

• medical or surgical appliances designed solely for the relief of disability or injury

• certain electrically or mechanically adjustable beds

• certain sanitary devices

• certain chair or stair lifts

• certain hoists and lifters

• motor vehicles that are capable of carrying up to 12 people, and have been designed or substantially and permanently adapted for the carriage of a person in a wheelchair or on a stretcher

• boats designed, or substantially and permanently adapted, for use by a disabled person

• other equipment and appliances designed solely for use by a chronically sick or disabled person

Further details on each of these categories can be found in Reliefs from VAT for disabled and older people (VAT Notice 701/7).

4.7 Motor vehicles but not ambulances that qualify for zero rating

When purchased or hired by an eligible body using charitable or donated funds, these vehicles are zero-rated:

• specially designed or adapted motor vehicles of a type described in paragraph 4.6

• unadapted motor vehicles that have between 7 and 50 seats, and are purchased or hired for use by an eligible body mainly for the transportation of blind, deaf, mentally handicapped or terminally ill people

• vehicles that have been substantially and permanently adapted to carry at least one disabled person in a wheelchair, the number of wheelchair spaces and access facilities depend on the seating capacity of the vehicle:

  • 1 to 16 — 1 or more wheelchair spaces and a fitted ramp to provide access for wheelchair or an electric or hydraulic lift
  • 17 to 26 — 2 or more wheelchair spaces and an electric or hydraulic lift
  • 27 to 36 — 3 or more wheelchair spaces and an electric or hydraulic lift
  • 37 to 46 — 4 or more wheelchair spaces and an electric or hydraulic lift
  • 47 to 50 — 5 or more wheelchair spaces and an electric or hydraulic lift

4.8 Rescue equipment that qualifies for zero rating

Rescue equipment is only zero-rated under this relief when all of these conditions are met:

• condition 1 — the supply is of:
  • telecommunication equipment
  • light enhancing equipment
  • heat detecting equipment
  • aural or visual equipment
  • not a type ordinarily supplied for private or recreational use
• condition 2 — the equipment is supplied to, or for donation to, a charity that provides rescue or first aid services
• condition 3 — the equipment is to be used by the charity solely for providing rescue or first aid services

Rescue equipment that is eligible for zero rating includes:

• image intensifiers, heat seekers and similar specialist equipment used to locate casualties

• flares used to illuminate large areas for search purposes

• two-way radios that are pre-calibrated to the emergency frequency

General use items such as mobile phones and pagers, binoculars, torches, searchlights and loudhailers are not zero-rated, even when they’re purchased for use by a rescue or first aid charity.

4.9 Resuscitation training models that can be zero-rated

Resuscitation training models (resuscitation dummies) can only be zero-rated if they include a head and torso designed for use during first aid training in cardiopulmonary resuscitation and defibrillation techniques.

4.10 Repair, maintenance or installation of eligible goods

A service to repair or maintain any goods detailed in paragraph 4.1 is zero-rated when the goods are owned or possessed by an eligible body.

Zero rating also applies to any goods, not normally eligible in their own right, supplied in connection with the zero-rated supply of a repair and maintenance service.

If the normal selling price of relevant goods includes an amount for installation, fixing or connection to mains services or testing equipment on site, zero rating applies to the total price — including that element which relates to installation or testing.

Where building works, such as removal of walls or reinforcing floors, are necessary in order to install large items of equipment, these works are standard-rated, even when carried out by the supplier of the equipment.

4.11 Examples of qualifying goods, services, parts and accessories

When consulting this table, you should remember that in addition to the supply being of qualifying goods or services, all of the other conditions detailed in paragraph 2.1 must be met for zero rating to apply.

With the pace of technological change, new types of equipment will often be developed. Each item must be reviewed individually and if it is unclear as to whether the item is a qualifying item and eligible for relief, the underlying principles set out in this notice should be followed to determine if the item is eligible. In areas of doubt, you should seek specialist advice or obtain a non-statutory clearance from HMRC.

Examples of eligible and non-eligible goods, services, parts and accessories are (this list is not exhaustive):

Not eligible for relief	Goods	Eligible for relief as
X	Air conditioners
	Air control systems, specialist (capable of precisely controlling pressure, temperature and humidity)	Laboratory equipment
X	Air filters, general
	Air filtration systems, specialist (built to meet specific circumstances)	Laboratory equipment
X	Air showers
X	Alarms, security of smoke
X	Alarm bracelets
X	Alcohol spray
	Anaesthetic apparatus	Medical equipment
	Animal cages, specialist (for example, free from chemicals and not available for consumer use)	Laboratory equipment
	Aprons, lead lined for x-ray protection	Medical equipment
	Aprons, cryogenic	Accessory to equipment
X	Aprons, other
	Artificial limbs	Goods for use of disabled person
	Autoclaves	Sterilising equipment
X	Bactericides
	Bandages	Medical equipment
	Barometers	Scientific equipment
	Batteries, bespoke (to eligible equipment)	‘Part’ of equipment
X	Batteries, generic
	Bedding, specialist (for example, free from chemicals) for animal cages	Laboratory equipment
	Bedpans	Medical equipment
	Bedpan washers, with sterilising steam cycle	Sterilising equipment
X	Bedpan washers, other
	Beds, highly specialised (for example, net suspension or medical water beds)	Medical equipment
	Beds, hospital — with tilting action or variable height features	Goods for use of disabled person
X	Biocidal sprays
	Biosafety cabinets	Laboratory equipment
X	Blankets
	Bunsen burners	Laboratory equipment
	Bottle washers, animal cage specific	Laboratory equipment
X	Cabinets, hazardous storage, generic
	Cages, animal, specialist (for example, free from chemicals and not available for consumer use)	Laboratory equipment
X	Cameras, still
	Cameras, video	Video equipment
X	Cameras, digital (with video capability)
	Cameras, thermal imaging	Scientific equipment
X	Cartridges (printer), ink toner
	Catchpots	Laboratory equipment
X	Catering equipment
	Catheters	Medical equipment
X	CD players or recorders
	Centrifuges	Scientific or laboratory equipment
X	Chemical spillage containment kits
	Clamps, medical	Medical equipment
X	Cleaning equipment
X	Closed circuit television systems
	Commode chairs	Goods for use of disabled person
	Computer disks and tapes	Accessory to computer equipment
	Computer keyboards	Computer equipment
	Computer mouse	Accessory to computer equipment
	Computer printers, including networking and multi-function printers, provided there is evidence the item is to be used mainly for medical or veterinary research, and so on.	Accessory to computer equipment
	Computer screens	Accessory to computer equipment
	Computer screen filters	Accessory to computer equipment
	Computer server	Computer equipment
X	Computer stationery
	Computer tablet, including iPads, provided there is evidence the item is to be used mainly for medical or veterinary research, and so on.	Computer equipment
X	Cooking appliances (used for sterilisation)
X	Cotton wool
	Cryostats	Laboratory equipment
X	Curtains
X	Data
	Deep freezers	Refrigeration equipment
	Dental chairs	Medical equipment
	Dental drills	Medical equipment
	Dental mirrors	Medical equipment
	Dental spittoons	Medical equipment
X	Disinfectants
	Drip poles	Medical equipment
X	Drugs trolleys
	DVD players, recorders or blank DVDs	Video equipment
	Endoscopes	Medical equipment
	Electro-cardiographs	Medical equipment
X	Ethernet
	Eye test charts	Medical equipment
	Examination couches, adjustable	Medical equipment
	First aid kits, supplied as pre-packaged units	Medical equipment
	Forceps	Medical equipment
X	Fuel
	Fume cupboards	Laboratory equipment
	Furnace, laboratory	Laboratory equipment
X	Furniture, non-laboratory
	Gloves, cryogenic	Accessory to equipment
	Gloves, medical or surgical	Medical equipment
	Gloves, nitrile medical or surgical	Medical equipment
X	Gloves, nitrile (non-medical or surgical)
X	Gloves, other (non-medical or surgical)
	Gown, medical or surgical	Medical equipment
X	Gymnasium equipment
X	Hearing aids
	Heart pacemakers	Medical equipment or goods for use of disabled person
	Hoists and patient lifting devices	Goods for use of disabled person
	Howie-style lab coats (reusable)	Laboratory equipment
X	Howie-style lab coats (non-reusable)
	Hypodermic needles	Medical equipment
	Ice-making machines	Refrigeration equipment
	Identification bracelets for patients	Medical equipment
	iPads	Computer equipment
X	iPhones
X	Kettle
	Kidney bowls	Medical equipment
	Lab coats, including Howie-style reusable	Laboratory equipment
X	Lab coats (non-reusable)
X	Laboratory animals
	Laboratory benches	Laboratory equipment
	Laboratory furnace	Laboratory equipment
	Laboratory glassware or plasticware	Laboratory equipment
	Laboratory ovens	Laboratory equipment
X	Lockers
	Masks, medical or surgical	Medical equipment
X	Masks (non-medical or surgical)
X	Masks, other
	Mattresses, specially designed for the relief or prevention of pressure sores	Medical equipment
	Medicine measures, graduated	Medical equipment
	Microscopes	Scientific or laboratory equipment
	Microtomes	Laboratory equipment
X	Microwave oven
X	Mobile phones
	Needles, suture	Medical equipment
X	Nurse call systems
X	Occupational therapy materials
	Operating lights	Medical equipment
	Ovens, laboratory	Laboratory equipment
X	Overbed tables
X	Overhead projection units
	Pacemakers	Medical equipment or goods for use of disabled person
X	Pagers
	Patient trolleys and stretchers	Medical equipment
X	personal protective equipment (PPE) (read paragraph 4.2.1 and 4.2.2)
	Physiotherapy equipment, specialised – other than gymnasium equipment	Medical equipment
	Pillows, orthopaedic, specially designed and used for neck or spinal injuries	Medical equipment
X	Pillows, other
	Pipettes	Laboratory equipment
X	Power supplies, including UPS
X	Printer cartridges
X	Projectors (including ceiling mounted options)
	Rack washers, animal cage specific	Medical equipment
	Radiography equipment	Medical equipment
	Renal dialysis units	Medical equipment or goods for use of disabled person
	Resuscitation equipment	Medical equipment
	Resuscitation dummies (read paragraph 4.9)	Resuscitation training model
X	Routers
	Scalpels	Medical equipment
	Scanner, MRI, CAT	Medical equipment
X	Screens
	Scrubs	Medical equipment
	Sharps bins	Medical equipment
	Sinks, specialised laboratory	Laboratory equipment
X	Smartphones
X	Sound systems
	Specialist animal cages (for example, free from chemicals and not available for consumer use)	Laboratory equipment
	Specialist bedding (for example, free from chemicals) for animal cages	Laboratory equipment
	Spectrometers	Scientific equipment
	Sphygmomanometers	Medical equipment
	Splints	Medical equipment
X	Stationery
X	Sterilising solutions
X	Sterilising wipes
	Stethoscopes	Medical equipment
	Surgical gloves	Medical equipment
	Surgical gowns	Medical equipment
	Surgical masks	Medical equipment
	Suture needles	Medical equipment
	Swabs	Medical equipment
	Syringes	Medical equipment
	Tablet, computer (including iPads), provided there is evidence the item is to be used mainly for medical or veterinary research, and so on	Computer equipment
X	Tape recorders
X	Telephones
X	Television sets
	Test tubes	Laboratory equipment
	Test tube rack	Accessory to equipment
	Thermal imaging cameras	Scientific equipment
	Thermometers, clinical	Medical equipment
	Thermometers, other	Scientific equipment
	Tongue depressors	Medical equipment
X	Towels
X	Uniforms
	USB memory sticks	Computer equipment
	Video cameras	Video equipment
	Video tapes	Video equipment
	Video players	Video equipment
	Video monitors	Video equipment
X	Wall screens or monitors
X	Waste disposal bags, boxes, jars and sacks
X	Waste disposal machinery
	Weighing machines	Scientific equipment
	Wheelchairs	Goods for use of disabled person
X	WiFi systems
X	Wipes, clean room
X	Wipes, sterilising
	Wound dressings	Medical equipment
	X-ray films or plates	Medical equipment
	X-ray machines – medical	Medical equipment
	X-ray machines – other	Scientific equipment
	X-ray viewers	Medical equipment

5. Funding and purchasing

5.1 How the purchase should be funded

For zero rating to apply, it’s essential that all funds to pay for the qualifying relevant goods or services be:

• charitable

• from voluntary donations or contributions

Alternatively, relevant goods or services (except computer software), purchased by a third party for donation to certain eligible bodies can be zero-rated — read paragraph 6.1.

If a charity buys goods with its own funds, the purchase is made with charitable funds.

Where a person, group or organisation contributes funds to an eligible body, and do not receive anything in return, this is a voluntary contribution or donation. Lottery funding is also regarded as a voluntary contribution for the purposes of this relief.

If an eligible body that is not a charity contributes to the purchase from its own resources, the goods or services cannot be zero-rated, even if the supply is of qualifying goods or services.

National Health Service funds are not charitable or donated, and any goods or services purchased with these funds are not zero-rated.

6. Purchasing goods and services for donation to an eligible body

6.1 General

Qualifying goods and services can be zero-rated when they’re supplied to any person, body or organisation for donation to:

• one of the health bodies specified in paragraph 3.2

• a hospital or research institution, whose activities are carried out on a not-for-profit basis — read paragraph 3.3

• one of the charitable institutions specified in paragraph 3.4

Brief details of the donor, and the eligible body to which the goods or services will be donated, should be given on any declaration of eligibility for zero rating provided by the purchaser to the supplier — read paragraph 8.2.

Items purchased for donation to any other charity may not be zero-rated under this relief, even if the charity is an eligible body that would benefit from relief if it purchased the goods or services itself.

When a charity sells, lets or exports goods that have been donated for that purpose, this onward supply of the goods by the charity can be zero-rated. For further details read Imports (VAT Notice 702).

7. Imports and exports

7.1 Goods purchased from outside the UK

VAT relief also applies when goods are imported from outside the UK. This means that where all the conditions in paragraph 2.1 are met, no VAT will be charged on the importation of qualifying goods. In order for relief to apply, importers should lodge the relevant declaration of eligibility (read paragraph 8.2) with us at the point of importation.

If you import computer software you should also read Imports (VAT Notice 702) and Place of supply of services (VAT Notice 741A).

7.2 Bringing goods into Northern Ireland from an EU member state

If you’re registered for VAT in Northern Ireland and you purchase goods from a business registered for VAT in an EU member state, you must normally account for VAT in the UK on your acquisition of the goods. The rate of tax due is the one applicable to the supply of identical goods in the UK. This means that no VAT is due on the acquisition of qualifying goods purchased by eligible bodies using charitable or donated funds. Eligible bodies acquiring relevant goods from an EU member state are not required to provide their supplier with an eligibility declaration, but should retain evidence that the goods were eligible for acquisition at the zero rate of VAT.

The single market (VAT Notice 725) explains the VAT rules that apply to goods acquired from member states of the EU.

If you’re in Northern Ireland but not registered for VAT and you purchase goods from an EU member state, the goods will be liable to VAT according to the rules of the member state in which the supply takes place. This supply will be taxed at the rate in force in that country, and zero rating will not apply.

7.3 Goods sold to eligible bodies based outside the UK

It is not a requirement of this relief that an eligible body is based in the UK, although relief will not apply to any supply made to health boards in other countries. Therefore, the relief outlined in this notice will apply where the conditions detailed in paragraph 2.1 are met in full.

Exports of goods to countries outside the UK are zero-rated under the normal export rules.

Goods exported from the UK (VAT Notice 703) explains the rules relating to goods that are exported from the UK.

8. Evidence of eligibility for relief

8.1 Determining if your supply is zero-rated

You should be able to determine whether the goods or services you’re supplying are qualifying goods and services (read paragraph 4.1). But, before you zero rate your supply, you must be satisfied that:

• the purchaser is an eligible body (read paragraph 3.1), or is purchasing the goods or services for donation to an eligible body — read paragraph 6.1

• the goods or services are being purchased with charitable or donated funds — read paragraph 5.1

• where appropriate, the goods or services are being purchased for a qualifying use — read paragraphs 3.4 and 4.3

You may wish to consult the checklist at section 9 before zero rating your supply.

8.2 Demonstrating eligibility for relief

8.2.1 The evidence of eligibility a supplier should obtain from the purchaser

The supplier is responsible for ensuring that all the conditions for zero rating are met. We recommend that suppliers obtain a written declaration of eligibility from each customer who claims entitlement to VAT relief. Such a declaration should contain sufficient information to demonstrate that the conditions for the relief are fulfilled. The declaration should be separate, or clearly distinguishable from, any order form or invoice against which the goods or services are supplied. A customer signing an order should not automatically be signing a declaration of eligibility for VAT relief.

The supplement to this notice contains examples of acceptable formats for declarations. These examples may be copied or otherwise reproduced by suppliers or purchasers. Any other declaration form used must require the purchaser to provide the same information as the relevant example shown in the supplement to this notice.

In addition to a written declaration, suppliers may require evidence that the purchaser is an eligible body. These purchasers may need to provide the following evidence:

• any charitable body may need to provide evidence that it is a charity — How VAT affects charities (VAT Notice 701/1) provides further details on which bodies are charities

• domiciliary care agencies, day centres or other establishments may need to provide evidence that care or treatment services are provided mainly to chronically sick or disabled people — read paragraph 8.2.2

• charitable transport providers may need to provide evidence that transport services are provided mainly to disabled people — read paragraph 8.2.3

• other charities may need to provide evidence that their sole purpose is the provision of services for, or on behalf of, chronically sick or disabled people — read paragraph 8.2.4

Suppliers must retain evidence that any supply they have zero-rated was eligible for relief. This may include an eligibility declaration, and any accompanying documents provided by the purchaser.

8.2.2 Demonstrating that care or treatment services are provided, in the majority of cases, to chronically sick or disabled people

To be an eligible body, a charitable day centre or care establishment should be able to demonstrate that over an extended period of time, 51% or more of the recipients of care or treatment services are chronically sick or disabled people. This should be evident from the care provider’s own records, including publicity materials and details of the charity’s day-to-day operations.

8.2.3 Demonstrating that transport services are provided mainly to chronically sick or disabled people

To be an eligible body, a charitable transport provider should be able to demonstrate that its transport services are provided predominantly to chronically sick or disabled people — read paragraph 3.4.4. It is not necessary for transport providers to maintain detailed records of all passengers transported, but the fact that its services are provided predominantly to chronically sick or disabled people should be reflected in its constitution or aims and objectives, or in other materials such as:

• publicity and advertising material

• any documents issued for the purpose of obtaining funding from a third party, such as a local authority

• evidence of day-to-day operations

• any other evidence that may be relevant, for example, an analysis of passengers carried over a representative period

For the charitable transport provider to be an eligible body, the evidence should all show a consistent theme, that transport services are focused towards one client group, chronically sick or disabled people, and are provided predominantly (but not necessarily exclusively) for the needs of these clients.

8.2.4 Demonstrating that the sole purpose and function of a charity is to provide services for, or on behalf of, chronically sick or disabled people

The charity’s purpose and function may be clear from its constitution and aims and objectives, but may also be reflected in its publicity material, applications for funding, and details of its day-to-day operations.

8.3 Responsibility for applying the correct rate of VAT

The supplier is responsible for ensuring that all the conditions for zero rating are met.

The production of a declaration or any other evidence of eligibility by a customer does not authorise the zero rating of a supply. A supplier must take reasonable steps to check any apparent inconsistencies, and to confirm that any information given by the purchaser is correct.

But, the purchaser has a responsibility to make a truthful statement of its eligibility for zero rating, and, where required, to provide appropriate documentation to support this statement.

8.4 If suppliers get it wrong

Extra Statutory Concession 3.11, which is set out in Notice 48 Extra-statutory concessions provides that customs will not seek to recover tax due from a supplier who has taken reasonable steps to check the validity of a declaration, but has failed to identify an inaccuracy, and, in good faith, has zero-rated a supply. This concession will only be applied if the supplier can demonstrate that all reasonable steps were taken to check the details provided on the declaration.

9. Checklist for suppliers

Step	Question	If yes go to	If no go to
1	Are the goods or services purchased by an eligible body? (read section 3)	Step 3	Step 2
2	Are the goods being purchased for donation to one of the eligible bodies specified in paragraph 6.1?	Step 3	Step 26
3	Is your supply the sale or hire of any of the relevant goods or services listed in paragraph 4.1?	Step 4	Step 26
4	Are you supplying either: medical, scientific, computer, video, sterilising, laboratory or refrigeration equipment (read paragraph 4.2) parts and accessories to such equipment (read paragraph 4.5) repair and maintenance of such equipment?	Step 5	Step 6
5	Is the equipment used, or to be used, mainly for: medical or veterinary research medical or veterinary training medical or veterinary treatment and diagnosis? (read paragraph 4.3)	Step 6	Step 26
6	Is your supply to a day centre or institution providing care or medical or surgical treatment?	Step 7	Step 8
7	Are the goods or services for use within the day centre or care institution?	Step 22	Step 26
8	Is your supply to a domiciliary care provider?	Step 9	Step 10
9	Are you supplying: medical equipment for use the course of domiciliary care (see paragraph 4.2.2) parts and accessories to such equipment (read paragraph 4.5) repair and maintenance of such equipment?	Step 22	Step 26
10	Are you supplying rescue equipment, or the repair and maintenance of rescue equipment? (read paragraph 4.8)	Step 11	Step 12
11	Is your supply to a charity providing rescue or first aid services?	Step 22	Step 26
12	Are you supplying repair or maintenance services?	Step 13	Step 14
13	Are the items you are repairing or maintaining qualifying goods (read paragraph 4.1) owned or possessed by an eligible body? (read paragraph 3.1)	Step 22	Step 26
14	Are you supplying an unadapted motor vehicle?	Step 15	Step 17
15	Does the vehicle have between 7 and 50 seats?	Step 16	Step 26
16	Is the vehicle for use by an eligible body to transport blind, deaf, mentally handicapped or terminally sick people?	Step 22	Step 26
17	Are you supplying computer software, or a license to use software?	Step 18	Step 20
18	Is the software to be used solely for medical research, diagnosis or treatment? (read paragraph 4.3)	Step 22	Step 26
19	Is the computer software purchased or hired by a third party for donation to a charity or eligible body?	Step 26	Step 22
20	Are you supplying a resuscitation training model as detailed in paragraph 4.9?	Step 21	Step 22
21	Is the training model for use in first aid training?	Step 22	Step 26
22	Is the purchaser an eligible body (read paragraph 3.1) using charitable or donated funds to fund the purchase? (read paragraph 5.1)	Step 24	Step 23
23	Are the goods or services for donation to one of the eligible bodies mentioned in paragraph 6.1?	Step 24	Step 26
24	Have you received a valid certificate or declaration, or any other evidence to demonstrate the purchaser’s eligibility for relief? (read paragraph 8.2)	Step 25	Step 26
25	The supply may be zero-rated subject to all of the conditions in paragraph 2.1 being met.
26	The supply does not qualify for zero rating under this relief. There are a number of other reliefs for supplies made to charities. For further details read How VAT affects charities (VAT Notice 701/1) and Goods or services supplied to charities (VAT Notice 701/58).

Your rights and obligations

Read Your Charter to find out what you can expect from HMRC and what we expect from you.

Help us improve this notice

If you have any feedback about this notice email: [email protected].

You will need to include the full title of this notice. Do not include any personal or financial information like your VAT number.

If you need general help with this notice contact the helpline for VAT: reliefs for disabled and older people, if you have another VAT question you should phone our VAT helpline or make a VAT enquiry online.

Putting things right

If you’re unhappy with HMRC’s service, contact the person or office you have been dealing with and they will try to put things right.

If you’re still unhappy, find out how to complain to HMRC.

How HMRC uses your information

Find out how HMRC uses the information we hold about you.

Published 6 August 2014
Last updated 6 October 2023 + show all updates

1. 6 October 2023

   Updated paragraphs 4.2.1, 4.2.8, 4.5.2, 4.10 and 4.11. Added new entries to table under 4.11.

2. 31 December 2020

   This page has been updated because the Brexit transition period has ended.

3. 1 May 2019

   Information about eligible bodies has been updated to help clarify those eligible to receive qualifying goods and services at the zero rate.

4. 25 January 2019

   The section 'Help us improve this notice' has been updated to include a link to the relevant contact for VAT reliefs for disabled and older people.

5. 9 October 2018

   New entries have been added to the list of examples of qualifying zero-rated goods or services in paragraph 4.11.

6. 6 August 2014

   First published.