Supplies of women’s sanitary products were standard-rated until 1 January 2001, when they became liable to a reduced rate of VAT of 5%.
Since the introduction of VAT there was considerable campaigning to introduce a relief for women’s sanitary products. The Principal VAT Directive ( Directive 2006/112) allows member- states to apply a reduced rate of VAT on a variety of health-related products.
Articles 98 and 99 of the Principal VAT Directive (
Directive 2006/112) permit
member-states to apply a reduced rate of VAT of not less than 5% to
supplies of goods and services specified in Annex III to the
Directive.
Category (3) of Annex III covers a variety of health-related
products:
pharmaceutical products of a kind normally
used for health care, prevention of illnesses and astreatment for medical and veterinary purposes,
including products used for contraception andsanitary protection.
The provision that reduced-rates the supply of women’s
sanitary products is the
VAT Act 1994,
Schedule 7A - Charge at a Reduced Rate,
Group 4 - Women’s Sanitary
Products,
Item No. 1:
Item No. 1. Supplies of women’s sanitary
products.
The notes to the Group define what
women’s sanitary products mean,
and what can therefore be reduced-rated under
item 1:
1(1) In this Group “women’s
sanitary products” means women’s sanitary products of
any ofthe following descriptions-
(a) subject to paragraph (2), products that are designed, and marketed, as beingsolely for use for absorbing, or otherwise collecting, lochia or menstrual flow;1(2): Sub-paragraph (1)(a) does not include protective briefs or any other form of clothing.
(b) panty liners, other than panty liners that are designed as being primarily for use asincontinence products;
(c) sanitary belts.
Details of the type of products that are reduced-rated are given in Notice 701/18 Women’s sanitary protection products.
Guidance of how to calculate the VAT due on reduced rate supplies of women’s sanitaryproducts, and on how to deal with mixed supplies of standard and reduced-rated goods, is given in Notice 701/18 Women’s sanitary protection products.
