Covid 19 - Irish Revenue announce Zero Rating on sales of PPE – will HMRC follow?

You will be familiar with our regular updates on this particular issue so it is an encouraging step to hear that the Irish Revenue Commissioners have announced a temporary Zero Rating for VAT purposes to apply to specific medical equipment that is being supplied into the main stream health and social care sector in the country in relation to Covid-19 . It is a concession and will apply to supplies made within the period of the 9 April to the 31 July 2020, but it’s an important relief and we can only hope that HMRC here in the UK will take note and follow.

It will be interesting to see the reaction from the EU Commission as – at a technical level – no new Zero Rate items can be added in those countries that use them, but whilst we recognise the legal aspects, the moral case is without challenge.

Details of the measure announced in Ireland:

“Covid-19 temporary VAT zero-rating measure

Revenue will permit the zero rate to apply to the supply and intra-Community acquisition of the goods listed below when supplied to or acquired by the HSE, hospitals, nursing homes, care homes, GP practices and the like, for use in the delivery of COVID-19 related health care services to their patients:

• personal protection equipment (PPE)

• thermometers

• hand sanitiser

• medical ventilators and specialist respiratory equipment such as respirators for intensive and sub-intensive care and other oxygen therapy apparatus including oxygen tents

• oxygen.

The zero rate may only be applied to supplies to hospitals, nursing and care homes, GP practices and the like; supplies to any other operators even if they are intended for onward supply to a health care provider are liable at the standard rate.”

As we hear news of steps in the UK on this matter we will update you.

As ever, please call Centurion should you need support with areas where VAT has got complicated for your organisation. We have a team of dedicated VAT specialists including those who specialise in VAT as it affects complex sectors such as Education, Charities, Housing Associations, local authorities and public bodies. Contact your usual Centurion team member or use emailus@centurionvat.com to get in touch.

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