From today, PPE purchased by care homes, businesses, charities and individuals to protect against Covid-19 will be free from VAT for a three-month period.
A zero-rate of VAT will apply to sales of personal protective equipment (PPE) for Covid-19 from 1 May 1 to July 31.
The treasury expect the move to save care homes and businesses more than £100 million.
It comes after import duty was also removed from PPE.
The government is acting under an exceptional basis allowed by EU rules during health emergencies.
The European Commission recently indicated support for member states to introduce temporary VAT reliefs to mitigate the impacts of the Covid-19 pandemic.
As part of the announcement, the Government explained how the move will particularly benefit care providers, who are often unable to reclaim the 20% VAT they incur on their purchases.