Following Germany’s decision to reduce VAT from 19% to 16% in order to boost consumer spending and Rishi Sunak’s contemplation of a similar action here in the UK, what are the chances and the pundit’s opinions?
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 foundhere
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.
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.
The PM announced on Friday a VAT deferral to support UK
businesses in this unprecedented time. The deferral will hopefully help
many businesses to stay afloat during this difficult period, but it is worth
reminding all businesses that this will not abolish any VAT due, it will
simply defer the date it is due for payment and exists to help those in
financial difficulty or hardship. To summarise how this deferral will
work in practice:
The 2020 Budget did have some announcements which will
affect many of our NHS Clients. Firstly, the NHS as a whole will be set
to receive £6 billion of additional funding across the course of this
parliament, and in addition, to support the recent outbreak of coronavirus, an
emergency fund of £5 billion is being set-up. The Chancellor gave
assurances that the NHS would get whatever resource it needs at
this crucial time – a welcome announcement.