Medicinal Equipment and Supplies –
Zero rate VAT relief guidance For help/advice on VAT
please email Corporate Accounting
on
Room 253, Northcote House
VAT is not payable on zero-rated supplies, and an invoice for a zero-rated supply will not constitute a VAT invoice.
There are certain instances where medical equipment and supplies can be zero-rated for VAT purposes when bought by a charitable organisation such as the University. In these instances a certificate should be obtained from the Corporate Accounting team to declare its eligibility for relief. This certificate should then be provided to the supplier at the point of purchase so that they know to class VAT as zero rated on the invoice.
The zero rating relief covers the following equipment only when purchased mainly for medical or veterinary research, training, diagnosis or treatment:
o medical equipment;
o scientific equipment;
o computer equipment and certain software;
o video equipment;
o sterilising equipment;
o laboratory equipment;
o refrigeration equipment;
o Parts and accessories for use in or with any of the above equipment
o the repair and maintenance of qualifying goods.
Equipment is articles designed or used for a specific purpose. It will usually be durable, although certain disposable items, such as syringes that are designed to be used once only, may still be equipment.
The following items are not equipment and do not qualify for zero-rating, even when supplied to, or for donation to, an eligible body:
· bulk materials such as liquids, powders, sheets, pellets, granules;
· clothing (other than specialist medical equipment such as surgical masks, gowns and gloves); and
· consumables such as chemical reagents, fuel, ink, medicines, oil, paper, and cleaning and sterilising fluids. However, medicines and chemical reagents may qualify for zero-rating under a separate relief when supplied to certain charities (see below). Further information can be found in Notice 701/1 Charities.
Medical equipment is equipment that has features or characteristics that identify it as having been designed for a medical (including dental) purpose or function, such as the diagnosis or treatment of patients.
This covers a wide range of goods, from simple items like bandages and tongue depressors, to complex machinery such as x-ray machines and scanners.
General use items used to equip a medical facility, such as a television purchased for use in a hospital ward, are not medical equipment.
Scientific equipment is equipment designed to perform a scientific function. This includes precision measuring equipment and analytical equipment such as thermometers, weighing machines and spectrometers.
Equipment that is not designed to perform a scientific function, but merely works on a scientific principle, is not scientific equipment.
As well as medical equipment there are also reliefs available for medical substances and medicinal products:
Note 1: A charity engaged in medical or veterinary research can purchase substances directly used for testing, or for mixing with other substances in the course of that research, at the zero rate. A ‘substance’ can be natural or artificial, and can be in solid or liquid form or in the form of a gas or vapour. If the substance is purchased in the form of gas the zero-rating will also apply to the cylinder rental.
Note 2: A charity engaged in the treatment or care of people or animals, or in medical or veterinary research, can purchase medicinal products at the zero rate.
A ‘medicinal product’ is a substance presented as a medicine, or an ingredient for a medicine, capable of being administered to people or animals for a medicinal purpose. The zero rate covers medicinal products purchased by a charity for the purpose of testing the efficiency of those products.
‘Medicinal purpose’ means:
· treating or preventing disease;
· diagnosing disease, or ascertaining the existence or degree of a physiological condition;
· contraception;
· inducing anaesthesia;
· otherwise preventing or interfering with the normal operation of a physiological function, whether permanently or temporarily, and whether by terminating, reducing or postponing, or increasing or accelerating the operation of that function, or in any other way.
Checklist:
A brief checklist of allowable and unallowable items is included below, if the item is not included below, please do not hesitate to contact the Corporate Accounting team for advice:
Eligible for relief / Goods / Eligible for relief as: /X / Air conditioners
X / Alarms, security or smoke
X / Alarm bracelets
Anaesthetic apparatus / Medical equipment
Aprons, lead lined for x-ray protection / Medical equipment
X / Aprons, other
Artificial limbs / Goods for use of disabled person
Autoclaves / Sterilising equipment
Bandages / Medical equipment
Barometers / Scientific equipment
Bedpans / Medical equipment
Bedpan washers, with sterilising steam cycle / Sterilising equipment
X / Bedpan washers, other
Beds, highly specialised e.g. net suspension or medical water beds / Medical equipment
Beds, hospital - with tilting action or variable height features / Goods for use of disabled person
X / Blankets
Bunsen burners / Laboratory equipment
X / Cameras, still
Cameras, video / Video equipment
X / Catering equipment
Catheters / Medical equipment
Centrifuges / Scientific or laboratory equipment
See note 1 / Chemicals
Clamps - medical / Medical equipment
X / Cleaning equipment
X / Closed circuit television systems
Commode chairs / Goods for use of disabled person
Computer disks and tapes / Accessory to computer equipment
Computer keyboards / Computer equipment
Computer mouse / Accessory to computer equipment
Computer printers / Accessory to computer equipment
Computer screens / Accessory to computer equipment
Computer screen filters / Accessory to computer equipment
Computer server / Computer equipment
X / Computer stationery
X / Cotton wool
X / Curtains
Deep freezers / Refrigeration equipment
Dental chairs / Medical equipment
Dental drills / Medical equipment
Dental mirrors / Medical equipment
Dental spittoons / Medical equipment
X / Disinfectants
X / DNA sequencing
DNA primers
Drip poles / Medical equipment
X / Drugs trolleys
Endoscopes / Medical equipment
Electro-cardiographs / Medical equipment
Eye test charts / Medical equipment
Examination couches, adjustable / Medical equipment
First aid kits - supplied as pre-packaged units / Medical equipment
Forceps / Medical equipment
X / Fuel
Fume cupboards / Laboratory equipment
Gloves, surgical / Medical equipment
X / Gloves, other
X / Gymnasium equipment
X / Hearing aids
Heart pacemakers / Medical equipment or goods for use disabled person
Hoists and patient lifting devices / Goods for use disabled perso
Hypodermic needles / Medical equipment
Ice making machines / Refrigeration equipment
Identification bracelets for patients / Medical equipment
Kidney bowls / Medical equipment
X / Laboratory animals
Laboratory benches / Laboratory equipment
Laboratory glassware / Laboratory equipment
X / Lockers
Mattresses, specially designed for the relief/prevention of pressure sores / Medical equipment
Medicine measures, graduated / Medical equipment
See note 2 / Medicinal products
Microscopes / Scientific or laboratory equipment
X / Nurse call systems
X / Occupational therapy materials
Operating lights / Medical equipment
X / Overbed tables
X / Overhead projecting units
X / Pagers
Patient trolleys and stretchers / Medical equipment
Physiotherapy equipment, specialised - other than gymnasium equipment / Medical equipment
Pillows, orthopaedic, specially designed and used for neck or spinal injuries / Medical equipment
X / Pillows, other
Pipettes / Laboratory equipment
Radiography equipment / Medical equipment
Renal dialysis units / Medical equipment or goods for use of disabled person
Resuscitation equipment / Medical equipment
Resuscitation dummies / Resuscitation training model
Scalpels / Medical equipment
X / Screens
Sphygmomanometers / Medical equipment
Splints / Medical equipment
X / Stationery
X / Sterilising solutions
Stethoscopes / Medical equipment
Surgical gloves / Medical equipment
Surgical gowns / Medical equipment
Surgical masks / Medical equipment
Suture needles / Medical equipment
Swabs / Medical equipment
X / Tape recorders
X / Television sets
Test tubes / Laboratory equipment
Thermometers, clinical / Medical equipment
Thermometers, other / Scientific equipment
Tongue depressors / Medical equipment
X / Towels
X / Uniforms
Video cameras / Video equipment
Video tapes / Video equipment
Video players / Video equipment
Video monitors / Video equipment
X / Waste disposal bags, boxes, jars and sacks
X / Waste disposal machinery
Weighing machines / Scientific equipment
Wheelchairs / Goods for use of disabled person
Wound dressings / Medical equipment
X-ray films/plates / Medical equipment
X-ray machines - medical / Medical equipment
X-ray machines - other / Scientific equipment
X-ray viewers / Medical equipment
Further information can be obtained from:
HM Customs & Excise website: www.hmrc.gov.uk
Notice 700 - The VAT Guide, All sections
March 2013
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