Question to the Department for Science, Innovation & Technology:

To ask the Secretary of State for Science, Innovation and Technology, what discussions she has had with the life sciences sector on the application of VAT on medicines supplied free-of-charge via EAMS and other compassionate access schemes.

The Secretary of State for Science, Innovation and Technology regularly engages with representatives of the life sciences sector. The issue of the application of VAT on medicines supplied free-of-charge via Early Access to Medicines Scheme (EAMS) and other compassionate access schemes has been raised with Ministers.

Application of VAT is determined on a case-by-case basis depending on the nature of the supply. This includes medicines or treatments provided for free under the EAMS.

In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.