Revenue & Customs Brief 1 (2021): 'The introduction of the zero rate of VAT for Women’s Sanitary Products' confirms that from 1 January 2021 women's sanitary products will be zero-rated.
It was announced in the 2020 Budget that the government would reduce the rate of VAT charged on women's sanitary products (WSP's) from 5% to 0% from 1 January 2021.
The previous 5% reduced-rating of WSP's could not be removed until the end of the transition period on leaving the EU: 31 December 2020.
Zero-rated WSP's will be the same as those covered by the previous reduced-rating. These are:
- Products that are designed and marketed, as being solely for use for absorbing, or otherwise collecting, lochia or menstrual flow.
- Panty liners, other than panty liners that are designed as being primarily for use as incontinence products.
- Sanitary belts.
Useful guides on this topic
Health and welfare: VAT
Reduced rating, zero-rating and VAT exemption can apply to various services relating to medical care, health and welfare.
Finance Act 2020: Tax update & rolling planner 2020-21
This rolling planner tracks the key tax announcements that affect the 2020-21 tax year and beyond.
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