Extension to Zero Rate VAT for PPE

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On the 1st May the UK Government announced there would be a temporary zero VAT rate for the supply of Personal Protective Equipment (PPE) that is required for protection from infection of COVID-19 in guidance published by Public Health England.

This has now been extended until the end of October 2020 and in turn will save care homes and businesses dealing with the coronavirus outbreak £155 million.

Financial Secretary to the Treasury Jesse Norman said:

“Extending the zero VAT rate on PPE will provide the relief needed by care homes in particular, so that as many people as possible continue to be protected against the coronavirus.”

Import duties had previously been removed from PPE and medical supplies intended to assist with the response to the pandemic in April ensuring that more essential equipment could reach the front line quicker.

Even though EU law governing VAT (which the UK is bound to until the end of the transitional period) requires the UK to charge VAT on the equipment, the government has acted under an exceptional basis allowed by EU rules during health emergencies. The European Commission recently indicated support for member states to introduce temporary VAT reliefs to mitigate the impacts of the Covid-19 pandemic.

The move will particularly benefit care providers, who are often unable to reclaim the 20% VAT they incur on their purchases.

Funding has been provided to Department of Health and Social Care (DHSC) to support the centralised procurement and supply of PPE, including supply to the NHS and care providers.

It has already acted to speed up PPE supply, harnessing the power of UK industry, scouring the world for new stocks, and creating a new distribution network to send PPE to frontline staff around the country.

The full article is available to read here.

The pandemic has seen a rise in businesses supplying PPE and unfortunately there are now a lot of fake products on the market. It is vital that you purchase all your PPE supplies from a registered safety supplier who can provide you with the relevant documentation.

If you have any doubt about the legitimacy of the products you have purchased or are about to then please get in touch with us and one of our team can advise.

T: 0800 161 3661

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