Zero-rating for Personal Protective Equipment (PPE)
The Government has announced that a temporary zero-rate will apply to all supplies of Personal Protective Equipment between 1 May and 31 July 2020 which are recommended for use by Public Health England in its guidance dated 24 April 2020 'Guidance, COVID-19 personal protective equipment (PPE)'.
- 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 piece protection – including single or reusable full face visors or goggles
This zero-rate does not affect items which were already zero-rated or exempted from VAT under other parts of the VAT legislation, only standard-rated items of PPE.
Whilst the VAT on such items would have been largely recoverable by the NHS and palliative care charities the measure provides a helpful cash flow benefit, whilst for care homes making exempt supplies of care which could not recover VAT, it creates an outright saving.
If you should have any questions, please contact Phil Salmon, VAT Partner, or your usual haysmacintyre contact.