Today it was announced to introduce a temporary VAT Zero rate reflect on certain items classified as Personal Protective Equipment. The Zero rating treatment will apply to supplies made (in the context of VAT tax point regulations) in the period between 1 May and the 31 July 2020.
Written on April 6, 2020 by Xeinadin Group
Products that are covered:
The products covered by this temporary measure include
- Disposable gloves
- Disposable plastic aprons
- Disposable fluid resistant coveralls or gowns
- Surgical masks – including fluid resistant type IIR surgical masks
- Filtering face piece respirators
- Eye and face protection – including single or reusable full face visors or goggles
Clearly what is not included in this list are hand sanitizer products which is an area where a lot of corporates as well as universities and colleges have also engaged in production and sale.
The issue of standard rating still remains for the supplies addressed in this note made in the period up to the 30 April of course. This note does also NOT address the Business Gifts issue where goods have been donated to the NHS or Care sector for no charge.
Who will benefit:
Any organisation or individual purchasing the items noted on the list. This will be particularly welcome news for organisations who are unable to recover the VAT they incur, which includes the NHS in respect of goods they buy in and the Care Home Sector.
The Government Notice can be found here
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