The Value Added Tax (Drugs and Medicines) Order, SI 2023/1006, extends zero rating on a temporary basis to drugs and medicines supplied under patient group directions between 9 October 2023 and 31 March 2027.
New Item 1A is introduced into VATA 1994 Sch 8 Group 12, to align the VAT treatment of these supplies with supplies of drugs and medicines dispensed by a registered health professional under a prescription.
A patient group direction is a written instruction that allows healthcare professionals to supply and administer specified drugs and medicines to a pre-defined group of patients without a prescription. The measure is designed to reduce costs for the NHS and better reflect prevailing practice – for example, where pharmacies provide medicines to groups of individuals without the need for individual GP prescriptions.
HMRC has also published a policy paper to explain the temporary extension of the VAT zero rate.
The Value Added Tax (Drugs and Medicines) Order, SI 2023/1006, extends zero rating on a temporary basis to drugs and medicines supplied under patient group directions between 9 October 2023 and 31 March 2027.
New Item 1A is introduced into VATA 1994 Sch 8 Group 12, to align the VAT treatment of these supplies with supplies of drugs and medicines dispensed by a registered health professional under a prescription.
A patient group direction is a written instruction that allows healthcare professionals to supply and administer specified drugs and medicines to a pre-defined group of patients without a prescription. The measure is designed to reduce costs for the NHS and better reflect prevailing practice – for example, where pharmacies provide medicines to groups of individuals without the need for individual GP prescriptions.
HMRC has also published a policy paper to explain the temporary extension of the VAT zero rate.
