VAT Zero Rating for Personal Protective Equipment

Under current UK VAT law, the standard rate of VAT (20%) applies to the sale of personal protective equipment (PPE). However, the European Commission recently announced backing for member states to implement temporary VAT reliefs to mitigate the impacts of the Covid-19 pandemic. 

As from 1 May and until 31 July 2020, the UK Government has introduced a temporary zero rate of VAT on PPE purchased by care homes, businesses, charities and individuals to protect against Covid-19. 

The UK Government has stated:

The policy objective of this relief is to relieve the burden of VAT on the price of purchasing PPE used for protection from coronavirus by front line workers.

This will particularly aid sectors that cannot recover VAT on such goods due to their VAT exempt status, such as care homes, but will benefit all consumers.

This temporary measure is being brought in alongside the previously announced removal of import duties on PPE. Please see our blog: UK Government Waives Import Taxes on Vital Medical Supplies.

If you require any further information or assistance with importing PPE, please call +44 (0) 118 932 8447 or email info@icsglobalservices.co.uk

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