VAT — children's face masks
Published 24 October 2022
© Crown copyright 2022
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This publication is available at https://www.gov.uk/government/publications/revenue-and-customs-brief-11-2022-vat-and-childrens-face-masks/vat-childrens-face-masks
Purpose of this brief
This brief sets out HMRC’s revised position regarding children’s face masks.
Who needs to read this
You should read this brief if you sell, or have sold, face masks which are specifically designed and held out for sale as being suitable for young children (under the age of 14).
Background
HMRC has reviewed all the evidence currently available about the continued and widespread use of face masks.
We now accept that face masks should properly be considered to be items of clothing.
This means that where face masks are specifically designed and held out for sale to young children (under the age of 14), the existing zero rate of VAT can apply.
Detail
Face masks designed and marketed as suitable for young children (under the age of 14) qualify for VAT relief under VAT Act 1994 Schedule 8 Group 16.
Further details about the VAT relief for clothing can be found in Young children’s clothing and footwear (VAT Notice 714), which has been updated to clarify that face masks are now considered to be items of clothing.
Action required
If your business has previously treated sales of children’s face masks as taxable at the standard rate, you can reclaim the VAT by following the guidance outlined in section 2.2 ‘If you record or calculate your VAT incorrectly’ of How to correct VAT errors and make adjustments or claims (VAT Notice 700/45).
You’ll need to quote this Revenue and Customs Brief number on your VAT 652 or claim letter.
Penalties
We may charge you a penalty if you do not take reasonable care to calculate your claim correctly, even if your claim is valid.