Taxis: VAT
The question
To ask the Chancellor of the Exchequer, for what reason it is her policy to exclude accessible taxi vehicles from the VAT exemption for disability-adapted motor vehicles.
Answered by James Murray
Wheelchair accessible vehicles (WAVs) are subject to a zero rate of VAT when purchased by a disabled person for their personal use, or by a charity that will make the vehicle available to disabled people.
Although taxis provide transportation services to disabled customers, they are not charities and not all their customers are wheelchair users. Therefore, this VAT relief does to extend to taxis that are WAVs.
However, if a taxi driver is VAT registered, they are eligible to reclaim the VAT paid on their vehicle.
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