Zero rating of dispensing drugs extended

The dispensing of drugs prescribed by appropriate practitioners from the European Economic Area (EEA) and Switzerland is to be zero rated. This is as a result of changes introduced in the Human Medicines Regulations 2012.

At present drugs and other qualifying goods dispensed by a registered pharmacist to an individual for their personal use on the prescription of an appropriate practitioner such as a medical doctor or dentist benefit from the zero rate of VAT. Prescriptions from health professionals from the EEA and Switzerland currently do not fall within the zero rate when dispensed by UK pharmacies.

These changes align the UK’s VAT legislation with the Human Medicines Regulations 2012 which is administered by the Department of Health and Social Care (DHSC) and allows prescriptions written by EEA health professionals to be dispensed by UK pharmacies. They extend the VAT zero rate to such private prescriptions for the first...