Article: VAT Exception For Qualifying Bodies On Scrub Caps

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Dec 6, 2022Medicus Updates

VAT Exception For Qualifying Bodies On Scrub Caps

We are super excited to announce that Medicus Caps has been granted clearance by HMRC to offer 0% Rated VAT on scrub caps purchases for a set of eligible organisations in the UK.

Are You Eligible?

The health bodies that can purchase qualifying goods at the zero rate are:

NHS trusts
Other hospitals whose activities are not carried on for profit. Your organisation would have to meet the following criteria:

Condition	Description
1	it cannot, and does not, distribute any profit achieved
2	it applies any surplus that arises from supplies of hospital or research services to the furtherance of its objectives

Special Health Authorities in England
Health Authorities, Special Health Authorities and Local Health Boards in Wales
Health Boards in Scotland
Health and Social Services Boards in Northern Ireland
Clinical Commissioning Groups
the Common Services Agency for the Scottish Health Service
the Northern Ireland Central Services Agency for Health and Social Services
the Isle of Man Health Services Board

Charities That Qualify

Any charity that

provides rescue or first aid services for humans or animals

provides transport services mainly to disabled people; or

has as its sole purpose and function the provision of a range of services for, or on behalf of, chronically sick or disabled people. Examples include charities established to: provide care or welfare services to disabled people; lobby on behalf of disabled people; or fund medical research into the causes, prevention or cure of disablement.

Purchasing goods and services for donation to an eligible body

6.1 General

Qualifying goods and services can be zero-rated when they’re supplied to any person, body or organisation for donation to:

one of the health bodies specified in the first group
a hospital or research institution, whose activities are carried out on a not-for-profit basis above.
one of the charitable institutions specified above.

Brief details of the donor, and the eligible body to which the goods or services will be donated, should be given on any declaration of eligibility for zero rating provided by the purchaser to the supplier.

Items purchased for donation to any other charity may not be zero-rated under this relief, even if the charity is an eligible body that would benefit from relief if it purchased the goods or services itself.

Learn more about Scrub Caps

We really are focused on providing not only the best service but collecting the most information on scrub caps and the benefits for your organisation and its patients. You can find our main article on everything you need to know about scrub caps here.

Written by Matt Price