Covid-19 Coronavirus

Value Added Tax (Zero-rating)(Coronavirus) Order 2020

Friday, 1 May 2020

This news release is issued to publicise changes being made to the rate of VAT on certain products relating to the coronavirus pandemic.

The Value Added Tax (Zero-rating)(Coronavirus) Order 2020 amends Schedule 9 to the Value Added Tax Act 1996 (“the Act”). The Order amends Group 3 of Schedule 9 to the Act to extend the zero-rate to electronically supplied versions of some of the publications listed in that group provided that they satisfy the conditions for zero-rating. It also amends the explanatory Notes to Group 3. This relief comes into operation on 1 May 2020 and is intended to reduce the cost of access to online publications when many people are staying at home.

The Order also introduces a temporary relief from VAT to the supply of personal protective equipment (PPE) recommended for use for protection from infection with coronavirus. The relief is introduced by way of a time limited addition of Group 19 to Schedule 9 to the Act. This will be in place from 1 May until 31 July 2020. The temporary tax relief measure will remove the burden of VAT on essential PPE needed by frontline staff. It will be important to sectors such as care homes that cannot currently recover VAT on such goods because of their VAT exempt status.

The amendments make changes that correspond to those made to the equivalent United Kingdom legislation and are required under the terms of the Customs and Excise Agreement

Further details of both measures can be found in Revenue and Customs Briefs 3/2020 and  4/2020 or by contacting the Advice Centre.

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