A. There is a zero-rate available for supplies of ‘’relevant goods’’ to an eligible body but the zero-rate only applies in limited circumstances.
The supply of any ‘’relevant goods’’ to an eligible body which pays for them with funds provided by a charity or from voluntary contributions or to an eligible body which is a charitable institution providing care or medical or surgical treatment for handicapped persons is zero-rated (VATA 1994, Schedule 8, Group 15, item 5)
Note 3 to Group 15 lists the ‘’relevant goods,’’ and in particular note 3(a) lists ‘’medical, scientific, computer, video, sterilising, laboratory or refrigeration equipment for use in medical or veterinary research, training, diagnosis or treatment.’’
VAT Notice 701/6 expands on ‘’relevant goods’’ and explains that certain resuscitation models for use in first aid training are relevant goods if they include a head and torso designed for use during first aid training in cardiopulmonary resuscitation and/or defibrillation techniques (VAT Notice 701/6, section 4.1 and 4.9)
Note 4 to Group 15 defines who is an eligible body for the purposes of this group; an NHS trust falls under Note 4(i).
Your client is supplying the dummy to an eligible body but it is not a ‘’relevant good’’ as it is not suitable for resuscitation training. Therefore, it does not meet the conditions for zero-rating, so your client should charge standard rate VAT.
If you have a query on the zero rate for eligible bodies including charities, why not contact the VAT Advice Line on 0844 892 2470 to discuss it. Our team of experts have a wealth of experience and can also provide a written consultancy service at £180 per hour plus VAT.
