Government Considers VAT Exemption on Covid Testing

The UK government is considering a VAT exemption for Covid testing to help reduce the cost to the public.

According to a report by The Telegraph, in addition to exempting PCR tests from VAT when administered or overseen by a registered nurse, the Treasury is looking at whether to fully exempt all Covid tests from the tax charged at a rate of 20%.

This would mean the cheapest PCR tests currently available to the public, which currently range from £60pp to upwards of £100pp, could fall to below £50pp.

There has been widespread criticism of the cost of testing in the UK, with easyJet Chief Johan Lundgren warning the day two PCR test requirement for green list arrivals alone could price families out of leisure travel.