The Treasury has announced that an amount equivalent to the VAT collected on donated personal protective equipment (PPE) will be given to two charities supporting NHS and other care workers. VAT is due on assets donated by businesses where they paid and reclaimed VAT when they originally purchased the goods. The amount given to the charities will reflect the VAT collected on donations made from 1 March until 30 April 2020, i.e. the period between PPE donations starting and when the temporary VAT zero-rate on supplies of PPE became effective.
The Treasury’s press release notes that ‘businesses will have until the end of June 2020 to tell HMRC what VAT they have paid, giving them time to complete their usual accounts and identify these costs’.
The Treasury has announced that an amount equivalent to the VAT collected on donated personal protective equipment (PPE) will be given to two charities supporting NHS and other care workers. VAT is due on assets donated by businesses where they paid and reclaimed VAT when they originally purchased the goods. The amount given to the charities will reflect the VAT collected on donations made from 1 March until 30 April 2020, i.e. the period between PPE donations starting and when the temporary VAT zero-rate on supplies of PPE became effective.
The Treasury’s press release notes that ‘businesses will have until the end of June 2020 to tell HMRC what VAT they have paid, giving them time to complete their usual accounts and identify these costs’.
