Temporary Zero-rating of Certain Medical Equipment
Issue
On 1 September 2020, the Cabinet issued a Cabinet Decision No. 9/12 O of 2020 (“Cabinet Decision”). The Decision concerns the temporary application of VAT at the 0% rate on certain supplies and imports of medical equipment. Furthermore, the Ministerial Decision No. 380 of 2020 (“Ministerial Decision”) issued by the Minister of Health and Prevention on 6 December 2020 (with effect from 1 September 2020) specifies the medical equipment that are zero-rated in accordance with the Cabinet Decision. In accordance with Cabinet Decision No. 15/3 O of 2021, the above decisions shall be effective until 31 December 2021.
This Public Clarification provides a summary of the zero-rating rules introduced by the above mentioned Decisions.
Summary
A supply or import of certain medical equipment may be zero-rated where the supply or import occurs within the period from the effective date of the Cabinet Decision until 31 December 2021.
The remainder of this Public Clarification describes the rules for determining which medical equipment are covered by the zero-rating rules and the timeframes for the application of the rules.
Detailed discussion
In accordance with the Cabinet Decision, a supply or import of certain medical equipment may be zero-rated. It should be noted that that the zero rating of supplies and imports under the Cabinet Decision is separate, and in addition to, zero-rating of any other medical equipment in accordance with Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate.
VATP025 – Zero-rating certain medical equipment – 06 04 2021 Download the complete