- HMRC has issued RCB 7(2023) on the change to the VAT treatment of drugs and medicines supplied in accordance with patient group directions.
- Zero rating will apply to such supplies of drugs and medicines from 9 October 2023 until 31 March 2027.
- The new zero rate applies to supplies made by a registered pharmacist or a General Practitioner practice where a pharmacy is too remote and dispensing is allowed under Note 2D, Group 12, Schedule 8 VATA 1994.
- The zero rating does not apply to vaccines and medicines administered by a health professional, for example by injection, as such supplies are exempt where the service is provided by a pharmacist or other medical professional listed in paragraph 2.1 of VAT Notice 701/57.
- Notice 701/57 will be updated accordingly.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
