VWSP2000 - Women’s sanitary products: Products and rates

Background

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%. At Budget 2020, the government announced that from 1 January 2021 WSPs would be subject to the zero-rate of VAT.

This guidance explains which WSPs may be supplied at the zero rate of VAT from 1 January 2021 (as outlined in Group 19 of Schedule 8 to the Value Added Tax Act 1994). Before this date, sales of WSP were subject to the reduced rate of VAT (5%).

UK Law

The provision that zero-rates the supply of women’s sanitary products is the VAT Act 1994, Schedule 8 – Zero-Rating, Part I – Zero-rated supplies of goods and services, Group 19 - Women’s Sanitary Products: 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 zero-rated under item 1:

1(1) In this Group “women’s sanitary products” means women’s sanitary products of any of the following descriptions-

(a) subject to paragraph (2), products that are designed, and marketed, as being solely for use for absorbing, or otherwise collecting, lochia or menstrual flow;

(b) panty liners, other than panty liners that are designed as being primarily for use as incontinence products;

(c) sanitary belts.

1(2): Sub-paragraph (1)(a) does not include protective briefs or any other form of clothing.

What products are Zero-rated?

The zero rate applies to the supply of any sanitary protection product that is designed and marketed solely for the absorption or collection of menstrual flow or lochia (discharge from the womb following childbirth). Examples include:

  • sanitary towels
  • sanitary pads
  • panty liners that are not designed as incontinence products
  • sanitary belts for use with looped towels or pads
  • tampons
  • keepers (internal devices for the collection of menstrual flow); and
  • maternity pads for the collection of lochia.

The zero rate does not apply to any product that is not designed and marketed solely for the absorption or collection of menstrual flow or lochia. Items that do not qualify for the zero rate include:

  • incontinence products, including panty liners designed primarily as incontinence products are not eligible for the zero rate, but may qualify for a separate VAT relief – please see ‘Reliefs from VAT for disabled and older people (VAT Notice 701/7)’.
  • clothing or sanitary accessories – Group 19 (2) excludes protective briefs and any other form of clothing
  • dual-purpose products designed to protect against both menstrual flow and incontinence

How is the VAT calculated?

Guidance on calculating the VAT due on zero-rated supplies of women’s sanitary products, 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’.

Since 1 January 2021 VAT is charged at the zero-rate on supplies of WSPs. Information on invoiced and retail sales, relevant for supplies which occurred before the change in rate came in to force, when WSPs were taxable at the reduced rate (5%) is also available in VAT Notice 701/18.