Home Contractor's Corner Temporary zero VAT rating for supply of PPE

Temporary zero VAT rating for supply of PPE

by Jennie Ward

Government announced temporary measure from 1st May until 31st July 2020 to assist businesses and individuals.

To assist the increased number of businesses and individuals who are purchasing personal protective equipment for protection from infection with coronavirus, the Government has announced the introduction of a temporary VAT zero rate on the supply of personal protective equipment (PPE). This took effect from 1st May 2020 and applies to all qualifying supplies until its expiry on 31st July 2020. 

In the background to the measure it is stated: “The temporary relief is being introduced as an urgent response to the coronavirus emergency.

“Its main objective 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 the emergency.

“Under current UK VAT law, the standard rate of VAT (20%) applies to the sale of PPE. However, the EU Commission has recently indicated support for temporary VAT reliefs (including zero-rates) directly linked to the efforts being undertaken to mitigate the impacts of the coronavirus pandemic. This means the UK now has more scope to review the VAT treatment of these supplies.”

Products covered by the zero rate include:

  • Disposable gloves
  • Disposable plastic aprons
  • Disposable fluid-resistant coveralls or gowns
  • Surgical masks – including fluid-resistant type
  • IIR surgical masks
  • Filtering face piece respirators
  • Eye and face protection – including single or reusable full face visors or goggles.

View the full announcement here.

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