HM Revenue and Customs
Draft legislation: The Value Added Tax (Drugs and Medicines) Order 2019
We are seeking views on draft legislation that amends the scope of the zero rate for prescription drugs to ensure consistency with the Department of Health and Social Care’s Human Medicines Regulations 2012.
This consultation closes at: 11:45pm on 30 October 2019
We want your views on draft legislation that will amend the scope of the VAT zero rate by inserting ‘an EEA Health Professional’ and ‘an approved country health professional’, both within the meaning of Regulation 213 of the Human Medicines Regulations 2012, into the definition of ‘appropriate practitioner’ in note (2B) to Item 1 of schedule 8 to the VAT Act 1994.
The insertion of ‘EEA Health Professionals’ will have effect in relation to supplies made before EU exit day and the insertion of ‘approved country health professionals’ will have effect in relation to supplies made on or after EU exit day.
The change will enable prescriptions issued by all approved medical practitioners to qualify for the zero rate.
This consultation will mainly be of interest to online prescription service companies, their UK patients, and dispensing pharmacists.
The proposed amendments will align the UK’s VAT legislation with the Department of Health and Social Care’s Human Medicines Regulations 2012, which already permit prescriptions written by EEA health professionals to be dispensed by UK pharmacies.
An amendment to the regulations will come into force on EU exit day. This will replace the category ‘EEA health professionals’ with ‘approved country health professionals’.
The new category will include professionals and countries on a list published under Regulation 214(6A) and, on EU exit day, this list will include existing EEA health professionals.
Before responding, you can read the:
- draft legislation
- draft tax information and impact note
(Draft) The Value Added Tax (Drugs and Medicines) Order 2019 PDF, 128KB, 2 pages
(Draft) Tax information and impact note PDF, 398KB, 3 pages
Ways to respond
Write to: Drugs and Medicines Consultation, VAT Reliefs Team, Room 3/35, 100 Parliament Street, London, SW1A 2BQ
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