21st Century Tax – the quirks of HMRC VAT codes around technology and animal cages.
So, HMRC has updated its list of items that qualify for VAT zero rating with an exemption certificate when paid through charitable funds or endowments.
The list features some surprising items that qualify which seems to bring the question of whether, in an increasingly digital age, we’re really applying zero tax ratings to the things that matter most.
For example, you won’t have to pay VAT on computer printers, computers or tablets (including iPads) USB memory sticks, DVD players recorder and blank DVDs or thermal imaging cameras.
However, you will have to pay VAT on the power supply to electronic devices, on mobile phones or smartphones (including iPhones), printer cartridges, any CD players or recorders and sound systems plus any projectors used with the computers or tablets – even the wallscreens or monitors to display from the projectors. Don’t even think about zero rating on any data, ethernet or wifi needed to use these devices, they’re not on the list. Oh, and if you want to keep your electronic devices clean, you’ll need to pay VAT on any gloves, sterilising wipes or alcohol spray.
As for the specialist animal cages? They’re VAT zero – including the bedding and rack and bottle washers.
To discover more about these codes and more, download our free NHS VAT COS App from the AppStore.