Change VAT status of social care provision from exempt to zero-rated

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Change VAT status of social care provision from exempt to zero-rated

Petition Details

Goods and services offered by care operators are currently exempt from VAT, so providers do not charge VAT on their services. We want the UK Government to change the VAT status from exempt to zero-rated to allow providers to reclaim VAT on expenses.

Additional Information

The sector is operating under increasing financial pressure and a major contributor to this is the VAT providers are unable to reclaim on their expenses. This is because goods and services provided by regulated social care providers are exempt from VAT, meaning they do not charge VAT on services.

Care providers cannot reclaim expenses such as rent, utilities and training, putting many businesses in a precarious financial position.

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