Pharmacy: VAT Exemptions
(asked on 5th July 2023) - View Source
Question to the HM Treasury:
To ask His Majesty's Government why VAT is applied if an NHS hospital pharmacy supplies out-patient medicine but if a private sector pharmacy supplies the same medicine it is zero-rated.
This question was answered on 18th July 2023
A prescription made by a medical practitioner for medicine dispensed from an NHS hospital pharmacy to an out-patient for self-administration off the hospital site is not subject to VAT. A supply by a private sector pharmacy can be zero-rated in similar circumstances.
If medicine forms part of the hospital supply of medical care to a patient, the medicine will be exempt from VAT.