Zero rate on prescriptions extended to pharmacists

A temporary VAT zero rate will apply to drugs and medicines supplied under a patient group direction issued under the Human Medicines Regulation 2012 from 9 October 2023 until 31 March 2027 HMRC has confirmed in Revenue and Customs Brief 7/2023. This brings their treatment into line with drugs and medicines dispensed on a prescription of a registered health professional.

The change has no impact on drugs or medicines that already qualify for VAT zero rating under existing provisions.

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 new zero rate applies to supplies made by a registered pharmacist (including a pharmacy technician in Great Britain (England Scotland and Wales)) or by a general practitioner practice where a pharmacy is too remote and dispensing is allowed...