VAT

The Chancellor has today announced that the Hospitality and Tourism sectors will benefit from a substantial reduction of the standard rate of VAT from 20% to 5% for a period of six months (Wednesday 15 July 2020 through to Tuesday 12 January 2021).

HMRC announced this week a few further VAT/ import duty reliefs which will support the NHS through this crisis:

• when importing certain animals for scientific research, the guidance can be found here
• when importing certain therapeutic substances like blood-grouping or tissue typing reagents (from plant, animal, other or human origin), the guidance can be found here
• when importing certain substances used for non-commercial biological and chemical research, the guidance can be found here

It is hoped that the above reliefs will support the NHS in their research and testing in relation to Covid-19 without VAT and customs duty being an additional barrier.  Trusts should be aware that the reliefs exist, as action may need to be taken in order for them to apply. 

Please don’t hesitate to contact one of the Berthold Bauer NHS VAT team if you have any questions about the reliefs.

A recent First-Tier Tax Tribunal considered whether various ultrasound scans performed on pregnant women would qualify for exemption under Schedule 9 VATA 1994.

Some more welcome VAT news today, that the VAT on all supplies of Personal Protective Equipment (PPE) will temporarily be zero-rated to reduce the associated cost burden to organisations like the NHS and care homes.