VAT on essential personal protective equipment (PPE) for
Covid-19 will be temporarily scrapped saving more than £100
million for care homes and businesses dealing with the
coronavirus outbreak, the Government has announced.
From tomorrow (May 1), PPE purchased by care homes, businesses,
charities and individuals to protect against Covid-19 will be
free from VAT for a three-month period.
Ministers have already removed import duties from PPE to ensure
more essential equipment can get to the front line quicker.
The Government has acted as soon as possible to bring the
measure into force. 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 is acting 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.
The Government is providing the NHS with the funding necessary
to purchase PPE and has committed to providing extra funding to
ensure the NHS has whatever it needs to tackle Covid-19.
The government has already acted to speed up PPE supply,
harnessing the power of UK industry, scouring the world for new
stocks, and creating a giant distribution network to send PPE
to keyworkers around the country.
