VAT on PPE Scrapped by HMRC

As of the 1st May, the UK Government will scrap the VAT on PPE purchases for a 3-month period, helping care homes, businesses, charities and individuals in need of PPE to reduce overheads during the pandemic.

Coming as hugely welcome news, this update is predicted to save such organisations a huge £100 million in VAT. With the announcement coming shortly after import duty was removed from PPE purchases, it seems the government is doing all it can to ensure PPE orders are moving freely and those in need of PPE are more financially equipped for equipment-related outlays.

While there are financial benefits to this tax scrappage, this is about more than money, with the Government claiming this change will speed up the process of getting PPE to the front line.

“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” reads the official government release.

This has come as good news to care providers in the UK for which 20% tax reclaims are often out of reach. 

The tax relief  is an extension of the support the government is already offering during the pandemic, with the state providing a series of additional funding streams to the NHS to make sure the health service has all the tools it needs to effectively and promptly tackle the virus.

Though many could argue that the money is there for the PPE equipment, the equipment itself is in short supply. While we are seeing all types of manufacturers alter their makelines to produce PPE, it is still estimated that 1 in 5 NHS workers and those in essential roles are without adequate PPE.

How we are helping to combat PPE shortages

Here at Hardshell, we are a global leader in PPE distribution, boasting an international network of suppliers to ensure we can accommodate anyone looking to enhance their level of protection during the pandemic.

Specialising in the supply of masks, gowns, gloves and various other protective items, we would be more than happy to discuss your PPE requirements with you. Contact our call centre now and learn more about our prices, stock levels and delivery times.