Zero rated VAT for PPE

The Government announced a change to the UK VAT law to introduce a temporary VAT zero rate which is effective from 1 May to 31 October 2020. These changes apply to any organisation that makes PPE, recommended for use in connection with protection from infection with coronavirus in guidance published by Public Health England.

The temporary VAT zero rate will apply to all supplies of PPE which are made between 1 May and 31 October 2020 and which are recommended for use by Public Health England in its guidance dated 24 April 2020 titled ‘Guidance, COVID-19 personal protective equipment (PPE)’. This includes supplies made from existing stock.

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

These temporary changes will not affect the VAT treatment of any of the supplies:

· described in Item 2 of Group 15 (Charities and such like) to Schedule 8, which allows for a zero rate for goods donated by a charity or from charitable funds

· that would be exempt by virtue of Items 4 and 9 of Group (Health and Welfare) to Schedule 9.