Minister McGrath announces Zero Rating of VAT on Covid-19 Testing Kits
The Minister for Finance Michael McGrath TD, has announced today (Saturday, 21 January) that VAT on supplies of Covid-19 testing kits which has been subject to a temporary zero rate up until 31 December 2022 as a result of an EU Commission derogation, will be zero rated on an ongoing basis with immediate effect.
The rationale for this approach is that the Minister, while recognising the success of the Government’s vaccination programme, believes that the continuing application of the zero rate of VAT to Covid-19 test kits is important due to the ongoing circulation of this virus and its significant impacts on the healthcare system.
This zero rating of Covid-19 testing kits will be put on a legislative basis at the first available legislative opportunity. In the meantime, however, Revenue have agreed to operate it with immediate effect on an administrative basis.
Minister McGrath commented:
“I believe this is an important issue to address as Covid-19 testing kits are one of the tools available in the fight against Covid-19 which still remains in general circulation at significant levels. In my view costs of such testing kits should be kept to a minimum, and this is the context in which I am zero rating VAT on these products with immediate effect.”