HMRC have announced that VAT charged on Women’s sanitary products (WSP) has been reduced from the previous 5% charge to 0% from 1st January 2021.
This was a move mandated by the Finance Act of 2016, but which could not be enacted until the Brexit transition period ended on 31st December 2020.
This is a welcome reduction on what has always been a contentious and unfair charge. VAT has been traditionally seen as a ‘luxury’ tax, and it has not sat well with most people that any VAT was charged on these products as they do not appear in any way to constitute a luxury item.
Please note that this change does not include any incontinence products, and that any WSP items sold prior to 1st January 2021 will still incur a VAT charge of 5%.
A full range of the items affected can be found in the relevant VAT Notice 701/18
On a final note, should you have any questions regarding this issue, please do not hesitate to contact your lead consultant to discuss the changes or contact us here