A church (excepted charity - ie registered place of worship but not registered with charity commission) is about to replace a minibus, which is used to bring elderly and infirm to various church activities, as well as transporting the youth group and others. The minibus is a 16 seater and is properly adapted for disabled use. It has a lift and wheelchair securing points in it. Can they supply the dealer with a certificate claiming vat exemption (or zero rating) on this?
I've gone round and round on this and know there is a simple answer - somewhere.
Andrew Prentice
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VAT Minibus
There are a number of pints to consider:
1. Just because a mini bus is able to take wheelchairs does not automatically give you vat exemption. It is the actual use that determines the VAT status not the ability for its use. (This point also applies to the installation of a lift in a building. If the predominant use for able bodied people then it is not fully vat exempt).
2. Has the church had a VAT exempt work carried out before?
3. A point to remember for a charity (but not a church) is within the charity registration, do the aims and objectives state anything about providing/supporting facilities for disabled people.
4. Depending on how large the ‘special’ element is it could be worth registering voluntarily for VAT- there are obvious book keeping changes but there could be significant savings.
A very good source of information on this topic is the Community Transport Association. Know membership rates and this could be recouped very quickly by taking advantage of the large discounts they have negotiated with major suppliers.