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Written Question
Pharmacy: VAT Exemptions
Tuesday 18th July 2023

Asked by: Lord Willis of Knaresborough (Liberal Democrat - Life peer)

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.

Answered by Baroness Penn

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.