18 April 2019 
Andrea Marshall, Tax Specialist
The First-tier Tribunal has held in the case of Actegy Ltd that even though the goods in question can be and are used by others, because they were specifically designed solely for use by disabled people they do qualify for zero-rating (provided all other conditions are met) under Schedule 8, Group 12, Item 2(g), VAT Act 1994. The tribunal followed the reasoning in the case of Pure Independence (UK) Ltd and considered whether the way the devices were marketed overrode their design intention, which can, in some instances, be the case. However, in this case the Tribunal decided that the marketing did not override the design intention, as it was aimed at those who were not medical professionals and so referred to the 'outcome as perceived by the user' by referring to a wide range of symptoms, rather than 'the strictly medical outcome'. As the Tribunal noted, those who purchased the devices and who were not disabled/chronically sick, would have paid standard-rated VAT on them anyway.
