How to setup disability VAT exemption for WooCommerce

Disability VAT Exemption is a relief measure available in the UK and some other EU countries, to alleviate financial pressure on individuals with disabilities and certain charitable organizations.

This initiative allows eligible individuals to purchase specific goods and services without the inclusion of Value Added Tax (VAT).

The free Tax Exemption for WooCommerce plugin helps you manage and offer this exemption, simplifying the process for both the vendors and eligible customers.

About Disability VAT Exemption

Disability VAT Exemption permits certain eligible individuals who are chronically sick or disabled to buy designated items at 0% VAT​.

This includes a variety of products solely designed or adapted for the use by disabled individuals, often termed as ‘zero-rated’ or ‘eligible for VAT relief’​.

The exemption is not a VAT refund system but a pre-emptive measure where qualifying goods are sold VAT-free at the point of sale​.

Who Qualifies for Disability VAT Exemption?

Eligibility for VAT exemption extends to individuals with long-term illnesses or disabilities, including physical or mental impairments that significantly impede one’s ability to perform daily activities, or those who are terminally ill​​.

Learn more on the UK government website: https://www.gov.uk/financial-help-disabled/vat-relief

Eligible Products

The range of products that may be eligible for VAT exemption includes:

• Medical and surgical appliances
• Wheelchairs and mobility scooters
• Equipment for aiding the hard of hearing and those with low vision
• Specialized beds, chairs, stair lifts, and other lifting equipment
• Goods specifically designed for disabled individuals, such as computer equipment, emergency alarm call systems, and certain boats and accessories​.

Why it’s Important To Offer Disability VAT Exemption

Implementing VAT Exemption functionality on your WooCommerce website makes it easy for eligible individuals to claim VAT exemption and resonates well with customers and the broader community, while also aligning with legal compliance and building a positive brand image.

1. Social Responsibility: Demonstrating support for individuals with disabilities reflects well on your business ethics and fosters goodwill among consumers.
2. Customer Loyalty: Offering a simplified VAT exemption process can foster loyalty, encouraging repeat business and positive referrals.
3. Competitive Advantage: Stand out from competitors by providing an easy-to-navigate VAT exemption process, which can be a deciding factor for consumers.
4. Legal Compliance: Following VAT exemption laws not only minimizes legal risks but also enhances your business’s compliance stature.
5. Enhanced Brand Reputation: Showing empathy and understanding towards all customers’ needs can significantly uplift your brand’s image.
6. Accessibility and Inclusivity: Simplifying the VAT exemption process promotes a more inclusive and accessible online shopping environment.
7. Positive Social Impact: Facilitating easy VAT exemption claims underpins your brand’s commitment to social responsibility, which is highly valued in today’s market.

Setting Up Disability VAT Exemption in WooCommerce

The Tax Exemption for WooCommerce plugin is a robust tool for implementing Disability VAT Exemption on your WooCommerce website.

Here’s a step-by-step guide to setting it up:

1. Download and install the free Tax Exemption for WooCommerce plugin from the WordPress plugin repository.
2. Navigate to the “Tax Exemption” settings under “WooCommerce” in the WordPress admin.
3. Enable the tax exemption feature.
4. Select the tax class for the Tax/VAT exemption.
5. Customize the location on the checkout page to display the tax exemption checkbox.
6. Optionally, enable the removal of tax on shipping for tax-exempt customers and customize text/labels used throughout the plugin​.

Advanced Features (Pro Version)

The PRO version of the plugin offers enhanced functionality such as:

• Custom tax exemption form fields.
• Tax exemption certificate upload field.
• Tax exemption settings in “my account” page.
• Only remove tax from specific products.
• Only allow exemption for approved users.
• Only allow exemption for logged in users.
• Only allow exemption for selected user roles.

Conclusion

Implementing Disability VAT Exemption in your WooCommerce store is a great step towards inclusivity.

The Tax Exemption for WooCommerce plugin simplifies this process, ensuring a seamless shopping experience for your eligible customers.

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Disclaimer:

The information provided in this article is intended for informational and educational purposes only, and should not be interpreted as professional financial or legal advice. It’s crucial to consult with a certified accountant or legal professional to verify your eligibility for VAT exemption and to ensure compliance with all applicable laws and regulations concerning Disability VAT Exemption within your jurisdiction before implementing any VAT exemption features on your WooCommerce platform.