Published 5 November 2026
The government has confirmed that online marketplaces will become responsible for collecting VAT on sales made by certain UK businesses through their platforms. The change was set out in the latest Budget and applies from October 2027, according to a THIIS Magazine report on the British Healthcare Trades Association (BHTA) response. The trade body supports the aim, but wants to be sure disabled customers do not lose out.
Under the rules, a UK seller is covered if it is VAT-registered, or if its sales on a particular platform exceed 90,000 pounds. The threshold applies to each platform separately, so a seller that is not VAT-registered and stays under 90,000 pounds on every marketplace it uses is not affected. The government’s factsheet on the change says the aim is to tackle VAT evasion and support fair competition, and that shoppers will not see any difference in how they buy. HMRC has promised detailed guidance before the rules start, including any accounting changes businesses will need to make.
For the mobility sector, the sticking point is VAT relief. Many products designed for disabled people can be bought without VAT when the buyer is disabled or has a long-term illness. The government’s guidance on VAT relief for disabled people lists examples such as wheelchairs and stairlifts, and the buyer confirms in writing that they qualify. BHTA Chief Executive David Stockdale told THIIS that moving VAT collection to marketplaces “must not make it harder for disabled people to access relief on essential equipment”, and called on HMRC to work with the sector to avoid unnecessary costs, bureaucracy and cash-flow pressures for responsible retailers.
The British Retail Consortium has raised a related concern. It welcomes the principle but says detailed rules are needed so the 90,000 pound threshold works proportionately and can be applied in practice. At this stage the practical detail for zero-rated sales is not set out, so it is too early to say how relief claims would work when a sale goes through a marketplace.
What this means for buyers
Nothing changes today, and the new rules do not start for almost a year. If you are eligible for VAT relief, the sensible approach is the same as now: check that a seller understands the relief and will deal with the declaration before you pay. Specialist retailers that sell through their own websites and showrooms, such as the suppliers listed in our company finder, are used to handling this paperwork. Our guides to wheelchair costs and stairlift costs explain how VAT relief affects the final price, and our mobility aids guide covers the wider range of equipment you may be considering.
We will update this story when HMRC publishes its guidance and the treatment of VAT-relief sales becomes clear.
It is also worth remembering that the rules only reach sales made through marketplaces. Purchases made directly from a retailer’s own website, over the phone or in a showroom are not part of this change, and second-hand sales are described in the government factsheet as staying outside it. If you are comparing prices, ask whether the quoted figure includes VAT or is shown with relief applied, so you are comparing like with like.
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Published 5 November 2026