HMRC has published a short paper (Brief 7/2003) providing context to the extension of VAT zero-rating to drugs and medicines dispensed in accordance with a patient group direction. The change was introduced by the VAT (Drugs and Medicines) Order, SI 2023/1006, and applies for drugs and medicines supplied between 9 October 2023 and 31 March 2027.
In essence, the VAT treatment is being updated to reflect the reality of the way healthcare professionals are able to supply drugs and medicines to patients. Rather than requiring individual prescriptions, a patient group direction allows for the provision of specified drugs to a pre-defined group of patients without prescription. The order simply brings the treatment of these supplies into line with the VAT treatment of drugs dispensed on prescription to individual patients.
HMRC has published a short paper (Brief 7/2003) providing context to the extension of VAT zero-rating to drugs and medicines dispensed in accordance with a patient group direction. The change was introduced by the VAT (Drugs and Medicines) Order, SI 2023/1006, and applies for drugs and medicines supplied between 9 October 2023 and 31 March 2027.
In essence, the VAT treatment is being updated to reflect the reality of the way healthcare professionals are able to supply drugs and medicines to patients. Rather than requiring individual prescriptions, a patient group direction allows for the provision of specified drugs to a pre-defined group of patients without prescription. The order simply brings the treatment of these supplies into line with the VAT treatment of drugs dispensed on prescription to individual patients.
