Medical VAT Relief (Zero Rating)
Aim
To help determine whether purchases of medical equipment, products/substances and software can be at 0% VAT (i.e. zero rated).
This guidance provides an overview of the VAT zero rating available. It is intended to cover the majority of straightforward cases and help you recognise when the situation is more complex and further assistance should be sought. Where specific advice is required, please contact the VAT team.
Key points to note
- To be at 0% VAT, you must be purchasing:
- A “qualifying” item;
- For a relevant medical use;
- Covered by a valid declaration to the supplier.
ALL of the above conditions must be satisfied.
- There are three categories of qualifying items:
- Qualifying equipment;
- Medicines and substances; and
- Bespoke software.
The relief does not generally apply to services – only repair and maintenance of qualifying equipment (see Can relief be claimed on anything else on the equipment relief page). (There is no specific relief for sampling, analysis or testing).
Note that, the relief is only available for purchases that are paid for with charitable funds, however as the University is a charity, all of its funds are deemed charitable regardless of who the original funding source is.
The University doesn’t generally provide medical diagnosis or treatment services or undertake any veterinary activities. If you believe that this is being provided, please contact the VAT team.
See also Medical VAT relief (zero rating) example items for a list of typical purchases, and whether each is qualifying.
Qualifying Items
-
Equipment
Used for medical research or training
-
Medicines and substances
Used for medical research
-
Bespoke software
Used for medical research
Issuing a medical zero rating declaration
Medical VAT Relief (Zero Rating) Example Items
Click here for a list of examples of qualifying and non-qualifying items
Template medical VAT relief (zero rating) declarations
Definitions of relevant medical uses (medical research and medical training)
Medical research definition:
Original systematic investigation undertaken in order to gain knowledge and understanding of the treatment or palliation of a physical or mental abnormality in humans i.e. research into human disease and injury; it includes the use of existing knowledge and experimental development to produce new or substantially improved materials, devices, products and processes including design and construction.
Medical training definition (equipment relief only):
Professional vocational training which is limited to doctors, nurses, surgeons and other health professionals who are, or seek to be, listed on a statutory register.
Help and guidance