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A query was made regarding the VAT rate applicable to menstrual cups and menstrual underwear. The DGT has determined that cups qualify for the reduced rate, whereas underwear is subject to the standard rate.
Question posed: For the purposes of Value Added Tax, the applicable tax rate for menstrual cups and panties.
Menstrual cups are taxed at 4% as they serve the same purpose and use as tampons, sanitary pads, and panty liners. Panties that absorb menstruation, vaginal discharge, and urinary incontinence are taxed at 21% as they are not expressly mentioned in the law and are susceptible to mixed use.
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