Question to the HM Treasury:

To ask Her Majesty's Government whether a care provider that is a (1) registered charity, (2) not-for-profit organisation, and (3) for-profit organisation, is required to pay value added tax when purchasing personal protective equipment.

A zero rate of VAT is applied to certain purchases of specialist clothing and other specialist medical equipment by health bodies and charitable institutions that provide care or medical treatment. In terms of clothing, this covers specialist surgical masks, gowns and gloves. The items subject to the zero rate are set out in Section 3 of VAT Notice 701/6 “Charity Funded Equipment for Medical and Veterinary Uses”.

The Government announced on 30 April a temporary zero rate effective from 1 May until 31 July 2020 for supplies of Personal Protective Equipment (PPE) recommended for use in connection with protection from infection with Covid-19. The relevant PPE is set out in guidance published by Public Health England on 24 April 2020 titled “Guidance, COVID-19 personal protective equipment” and further guidance is available on GOV.UK.

Social care or welfare services are generally exempt from VAT. Organisations offering such services are not required to charge VAT where they are regulated by the Care Quality Commission. The exemption is explained in VAT Notice 701/2 “Welfare Services and Goods”.