In a change of policy, HMRC is now treating sales of face masks designed for children under the age of 14 as items of clothing. Revenue and Customs Brief 11/2022 (VAT and children’s face masks) announces that sales of children’s face masks should therefore be zero rated. VAT Notice 714 (young children’s clothing and footwear) is to be updated accordingly.
The brief advises businesses to reclaim VAT on sales of children’s face masks that were treated as standard rated, and to follow the guidance in VAT Notice 700/45 (how to correct VAT errors and make adjustments or claims).
In a change of policy, HMRC is now treating sales of face masks designed for children under the age of 14 as items of clothing. Revenue and Customs Brief 11/2022 (VAT and children’s face masks) announces that sales of children’s face masks should therefore be zero rated. VAT Notice 714 (young children’s clothing and footwear) is to be updated accordingly.
The brief advises businesses to reclaim VAT on sales of children’s face masks that were treated as standard rated, and to follow the guidance in VAT Notice 700/45 (how to correct VAT errors and make adjustments or claims).
