The UK government has removed VAT on the purchase by businesses and individuals of personal protective equipment (PPE) for three months amid the Covid-19 pandemic.
The temporary zero rate that will apply to supplies of PPE as defined by Public Health England’s coronavirus PPE guidance on 24 April.
The measure will take effect from 1 May to 31 July 2020.
Under current UK VAT law, the standard rate 20% applies to the sale of PPE.
The VAT suspension will 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, HM Revenue & Customs said in a statement.
“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,” it added.
Representative body Independent Care Group (ICG) welcomed the move, saying it is “refreshing” that the government had listened to pleas of social care providers struggling financially because of the fight against Covid-19.
“We are pleased that the Chancellor has listened and taken this step to save some money for social care providers,” said chairman Mike Padgham.
“We would also like the Government to help providers to support social care workers who are off sick because they have diagnosed Covid-19 or have symptoms. In the longer term, we want a complete review of social care,” he added.
