Following a request from the Minister for Finance and Public Expenditure and Reform, Revenue will allow the application of the zero rate of VAT to the supply to the HSE, hospitals and other health care settings of personal protection equipment and medical equipment for use in the treatment of patients with Covid-19. In addition, the tax treatment of the supply of emergency accommodation is clarified. Details of this temporary concession are set out below.

Covid-19 temporary VAT zero-rating measure

Revenue will permit the zero rate to apply to the supply and intra-Community acquisition of the goods listed below when supplied to or acquired by the HSE, hospitals, nursing homes, care homes, GP practices and the like, for use in the delivery of COVID-19 related health care services to their patients:

  • personal protection equipment (PPE)
  • thermometers
  • hand sanitiser
  • medical ventilators and specialist respiratory equipment such as respirators for intensive and sub-intensive care and other oxygen therapy apparatus including oxygen tents
  • oxygen

The zero rate may only be applied to supplies to hospitals, nursing and care homes, GP practices and the like; supplies to any other operators even if they are intended for onward supply to a health care provider are liable at the standard rate.

Timeline for the Covid-19 temporary VAT zero-rating measure

This concessional treatment will apply from 9 April 2020 up to 30 April 2021, subject to review.

What records should suppliers maintain?

In addition to the normal record keeping requirements, suppliers of these goods will need to satisfy themselves that their customer is eligible to receive zero rated supplies.