HMRC has published a policy paper confirming the plan to apply zero rate VAT on supplies of women’s sanitary products, which are currently subject to VAT at the reduced rate of 5%.

Following discussion at the recent European Council meeting, the prime minister secured agreement to give the UK and other member states the ability to flex zero and reduced rates of VAT.

The HMRC policy paper states: ‘The UK is using this opportunity to provide for the reduction of VAT on women’s sanitary products to the zero-rate.’

EU approval was expected as part of a plan for EU VAT reform, due to be released last week, but which has been delayed. Once this is granted, HMRC says the legislation will come into force on a day appointed by Treasury regulations.

The paper says the government intends to enforce these regulations as soon as possible following Royal Assent.

Under the proposals, Group 4, Schedule 7A, VAT Act 1994, which permits the reduced rate of VAT to apply to the supply of women’s sanitary products, will be withdrawn and the same legislation will be inserted as Group 19 into Schedule 8 (the zero-rate schedule).

HMRC says the measure is likely to affect 18m women and will decrease receipts by approximately £15m a year.

The HMRC policy paper, Vat Zero Rating of Womens’ Sanitary Products, is here