Freestyle Libre sensors and VAT

[Gloucestergirl]

I have ordered sensors direct from Abbott before but I heard that there was a delay of several days when ordering from them so tried to buy one off the shelf at a couple of Lloyds pharmacies in Sainsburys stores and was quoted £63 which included VAT and they appeared not to know about VAT exemption for diabetics so I didn't buy one. I had been trying to find a definite statement to show shops that Freestyle Libre sensors were exempt as they were specifically made for and used by diabetics so tried the HMRC website and as you can ask questions about VAT exemption for disabled people I asked if they could verify that the sensors were exempt and added that I had been diabetic for 23 years. I received a reply that said that due to the complexity of my query they were passing it on to their VAT specialists and there was me thinking it would be a simpleYes or No answer! Several days later I received this reply:-

"VAT is a self-assessed tax and only the designer or manufacturer is able to determine whether goods have been ‘designed solely for use by disabled people’. This means the original intention of the designer was to produce equipment or an appliance designed solely to meet the needs of persons with one or more disabilities.

Sub-paragraph 4.5.1 of VAT Notice 701/7: Reliefs from VAT for disabled and older people confirms that it is not sufficient for zero-rating when the equipment or appliance is merely destined or intended for use by a disabled person, or is mainly purchased by disabled persons. I recommend you liaise with the designer or manufacturer to determine whether the goods have been ‘designed solely for disabled use’. If the designer/manufacturer can provide evidence to verify this, then the supplier would be able to supply the goods to eligible customers at the zero-rate."

I didn't know that it was up to the manufacturer to decide if it was VAT exempt or not! I went to the Abbott website and eventually found this statement:-

All prices are in GBP, include VAT and exclude any delivery charges incurred. The price is the one that applied at the time the order was placed. If you have a long-term illness or you're disabled, you might not have to pay VAT on certain goods and services that you buy or bring into the UK. For further information on VAT relief, please visit the HMRC website.

So, HMRC are saying get evidence that from the manufacturer and the manufacturer is saying visit the HMRC website! I would think that the sensor is solely intended for diabetics and no one else but are we really expected to get confirmation from Abbott in order to get the VAT taken off? I'm pretty sure that I wasn't charged VAT when I ordered from Abbott. I'm not really any wiser so I think I shall just use the information on VAT exemption for diabetics on this website and hope for the best!

 

[urbanracer]

I have ordered sensors direct from Abbott before but I heard that there was a delay of several days when ordering from them so tried to buy one off the shelf at a couple of Lloyds pharmacies in Sainsburys stores and was quoted £63 which included VAT and they appeared not to know about VAT exemption for diabetics so I didn't buy one. I had been trying to find a definite statement to show shops that Freestyle Libre sensors were exempt as they were specifically made for and used by diabetics so tried the HMRC website and as you can ask questions about VAT exemption for disabled people I asked if they could verify that the sensors were exempt and added that I had been diabetic for 23 years. I received a reply that said that due to the complexity of my query they were passing it on to their VAT specialists and there was me thinking it would be a simpleYes or No answer! Several days later I received this reply:-

"VAT is a self-assessed tax and only the designer or manufacturer is able to determine whether goods have been ‘designed solely for use by disabled people’. This means the original intention of the designer was to produce equipment or an appliance designed solely to meet the needs of persons with one or more disabilities.

Sub-paragraph 4.5.1 of VAT Notice 701/7: Reliefs from VAT for disabled and older people confirms that it is not sufficient for zero-rating when the equipment or appliance is merely destined or intended for use by a disabled person, or is mainly purchased by disabled persons. I recommend you liaise with the designer or manufacturer to determine whether the goods have been ‘designed solely for disabled use’. If the designer/manufacturer can provide evidence to verify this, then the supplier would be able to supply the goods to eligible customers at the zero-rate."

I didn't know that it was up to the manufacturer to decide if it was VAT exempt or not! I went to the Abbott website and eventually found this statement:-

All prices are in GBP, include VAT and exclude any delivery charges incurred. The price is the one that applied at the time the order was placed. If you have a long-term illness or you're disabled, you might not have to pay VAT on certain goods and services that you buy or bring into the UK. For further information on VAT relief, please visit the HMRC website.

So, HMRC are saying get evidence that from the manufacturer and the manufacturer is saying visit the HMRC website! I would think that the sensor is solely intended for diabetics and no one else but are we really expected to get confirmation from Abbott in order to get the VAT taken off? I'm pretty sure that I wasn't charged VAT when I ordered from Abbott. I'm not really any wiser so I think I shall just use the information on VAT exemption for diabetics on this website and hope for the best!

Contact Lloyd's customer support via the website and they will send you a reply that you can show in-store to confirm the VAT exempt fee. Make sure that customer support knows that their staff are unaware of the rules. (It worked for me.)

From Abbott on-line you only have to tick a box to self-declare your exemption. I think it is currently cheaper to buy direct from Abbott if you can

 

[Deleted Account]

Question ... because I honestly do not know ...
I know people with type 1 can purchase Libre exempt from VAT. Is the same correct about people with type 2

 

[hh1]

@Gloucestergirl and @helensaramay this link takes you to a government page where you can complete a VAT exemption declaration to take to whoever you're buying Libres from. If you read down the page and follow the link there to Reliefs from VAT for older and disabled people you'll find the criteria which allow you to claim VAT exemption. Libre obviously fits the criteria as you can claim exemption if you buy direct; as far as T2 diabetes is concerned (as opposed to T1) the criteria only refer to diabetes and don't specify which type (see para 3.2.1). Hope that helps.

 

[DavidGrahamJones]

tried to buy one off the shelf at a couple of Lloyds pharmacies in Sainsburys stores and was quoted £63 which included VAT and they appeared not to know about VAT exemption for diabetics so I didn't buy one.

Are you anywhere near a Boots Pharmacy? My little local Boots (Hazlemere, Bucks) are well aware of VAT exemption and like you say, well aware that it's a medical device and VAT exempt for medical users. I do know of non diabetics using the device, but I think they don't offer that information when purchasing. Bit strange that your Lloyds pharmacy are unaware and sounds like you've been given a bit of a runaround, but what do I know, more and more things surprise me as I get older. BTW, my Boots charge £47.50, although to be more accurate they charge a price higher than that including VAT and then use certain buttons on the till to take off the VAT to arrive at £47.50 (might be a few pence out, my memory isn't great).

I have also been to a Superdrug Pharmacy and didn't have any problems. Their price was £35 and then it went to £40 and I guess it could be more now. My local Superdrug store started having supply issues, so I stick to my local Boots.