Posted on 1st September 2020

The Government has announced a zero-rating on VAT on the sale of PPE until 31^st October 2020 (Originally it was only to run until 31^st July 2020, however it was extended in early July). This took effect from 1 May 2020 and is directly linked to strategy of reducing the impact of COVID-19.

Products covered by the zero rate include;

• Disposable gloves
• Disposable plastic aprons
• Disposable gowns
• Surgical masks including IIR surgical masks
• Filtering face piece respirators
• Eye and face protection including face visors or goggles

Who does the ‘temporary zero-rating for PPE’ apply to?

• Businesses
• Charities
• Individuals in the UK
• Care Homes (It is expected to particularly benefit care providers, who are often unable to reclaim the 20% VAT incurred on PPE as they are fully or partially exempt businesses)

VAT in the UK is governed by EU Law, at least until Brexit 1^st January 2021, however the European Commission approved member states to introduce temporary VAT reliefs to mitigate the impacts of COVID 19 pandemic.

For further information please visit;

https://www.gov.uk/government/publications/vat-zero-rating-for-personal-protective-equipment/vat-zero-rating-for-personal-protective-equipment

Posted in Corporate news, Trends and technology, Troy insights, Uncategorised