Changes to the arrangements for zero rating incontinence products purchased through retail outlets by entitled people take effect from 1 October 2001. The main change is that eligible incontinence products, for retail sale, may be zero rated on the shelf. In practice, this means that an incontinent person may purchase incontinence products at any till and receive automatic zero rating.
Changes to the arrangements for zero rating incontinence products purchased through retail outlets by entitled people take effect from 1 October 2001. The main change is that eligible incontinence products, for retail sale, may be zero rated on the shelf. In practice, this means that an incontinent person may purchase incontinence products at any till and receive automatic zero rating.
There will no longer be a requirement for the customer to provide a written declaration to the retailer confirming they are eligible for VAT relief. Due to the specialist nature of these products, Customs believe that only entitled people are likely to buy them(!).
Supplies of eligible incontinence products over the Internet or by mail order also qualify for VAT relief providing they are made to individuals and not institutions.
Customs will expect retailers, Internet and mail order suppliers to have a signed declaration, or other supporting evidence that the supply is to an incontinent individual and not to an institution such as a nursing home, for customers who buy large quantities.
Disposable and washable incontinence pads including pads that are incorporated in briefs, underwear designed for use by an incontinent person (i.e. underwear that is waterproof or leak-proof), and collecting devices.
These new measures do not change the VAT liability of incontinence products. Consequently, they do not affect the VAT position of nursing homes, hospitals or the National Health Service who continue to remain ineligible for VAT relief on the purchase of incontinence products.
(Source: Customs Business Brief 12/01 dated 11 September 2001.)
