The Value Added Tax (Zero Rate for Personal Protective Equipment) (Coronavirus) Order, SI 2020/458 introduces a temporary VAT zero rate for supplies of personal protective equipment (PPE) made between 1 May and 31 July 2020 and which are recommended for use in official Public Health England guidance. The change is made by introducing a new Group 20 into VATA 1994 Sch 8.
Products covered by the zero rate include:
l disposable gloves;
l disposable plastic aprons;
l disposable fluid-resistant coveralls or gowns;
l surgical masks;
l filtering face piece respirators; and
l eye and face protection.
The principal objective of the change is to relieve businesses, particularly in the healthcare and residential care sectors, of the burden of tax on essential infection protection equipment needed to deal with coronavirus.
The CIOT has noted that the separate import VAT concession for imported PPE Pay no import duty and VAT on medical supplies, equipment and protective garments (COVID-19) appears to have a significantly wider scope, in terms of the products it includes (relief can be claimed for all goods included in the Covid-19 commodity codes list), than the VAT zero-rating easement.
The Value Added Tax (Zero Rate for Personal Protective Equipment) (Coronavirus) Order, SI 2020/458 introduces a temporary VAT zero rate for supplies of personal protective equipment (PPE) made between 1 May and 31 July 2020 and which are recommended for use in official Public Health England guidance. The change is made by introducing a new Group 20 into VATA 1994 Sch 8.
Products covered by the zero rate include:
l disposable gloves;
l disposable plastic aprons;
l disposable fluid-resistant coveralls or gowns;
l surgical masks;
l filtering face piece respirators; and
l eye and face protection.
The principal objective of the change is to relieve businesses, particularly in the healthcare and residential care sectors, of the burden of tax on essential infection protection equipment needed to deal with coronavirus.
The CIOT has noted that the separate import VAT concession for imported PPE Pay no import duty and VAT on medical supplies, equipment and protective garments (COVID-19) appears to have a significantly wider scope, in terms of the products it includes (relief can be claimed for all goods included in the Covid-19 commodity codes list), than the VAT zero-rating easement.
