Disability advocate issued with €23k Vat bill for modified van 'thrilled' to have forced legislative reform

Leigh Gath in her converted vehicle in Pallaskenry, Co Limerick.

A disability advocate who was issued with a Vat bill of over €23,000 for a modified van said she is “thrilled” to have forced legislative reform so it will never happen again.

Finance Minister Michael McGrath on Tuesday signed regulations establishing a fourth category of reliefs under the Disabled Drivers and Passengers Scheme which financially supports people who need to adapt vehicles.

This provides up to €48,000 for disabled drivers and €32,000 for disabled passengers. 

The change is applicable to anyone who has borne or paid Vat, vehicle registration tax (VRT) or residual VRT on or after August 1, 2022.

Leigh Gath, a thalidomide sufferer, and disability advocate living in Limerick, had a van modified in England as nobody does this specialised work in Ireland.

She was horrified to discover on her return that despite pre-existing funding an additional €23,372 in VAT was required.

Leigh Gath holding the new legislation around supports for disabled drivers.

Having campaigned for change, she met the minister again in Dublin. 

“I’m thrilled, I am absolutely thrilled,” she said. 

“It is a good win”.

She welcomed the backdating of reforms to last year as it means other people with disabilities hit with huge bills can benefit immediately.

“I just want to say I am delighted that they have recognised that there are people with disabilities whose vehicles and modifications cost more than the allocated €22,000 and that this is being addressed,” she said.

“But there still is a way to go, in that the modifications in a vehicle should be zero-Vat rated and are not.

Finance Minister Michael McGrath signed regulations establishing a fourth category of reliefs under the Disabled Drivers and Passengers Scheme.

"I thank Minister McGrath for listening and hearing what I was saying and it’s a good start to hopefully changing up the whole scheme.” 

Mr McGrath said: “I am delighted to be in a position to sign these regulations which will provide much-needed assistance for people who have very significant and costly adaptation needs for wheelchair-accessible vehicles.

“I want to sincerely thank Leigh Gath, who I met back in March, for highlighting this issue and for her tireless work advocating for people living with a disability.” 

The department also consulted with the Irish Wheelchair Association and the Disabled Drivers Association.

Mr McGrath added: “While the changes I am making today are to be welcomed, I do acknowledge that we must do more to provide better transport and mobility support options for people with disabilities, and the Ombudsman’s report last week further highlighted this.” 

Supporting the reforms, Minister of State for Disability, Anne Rabbitte, said she will work with the Department of Finance to bring about further reforms.

“Mobility is something we all can take for granted but for people with disabilities, they do not have this luxury. It is vital we provide support for people with disabilities and enable them to live independent lives,” she said.

Ombudsman Ger Deering said it is ‘shameful’ there is no suitable government support to help people with disabilities access personal transport.