VATHLT2535 - Prescriptions Provided Under Serious Shortages Protocol
The Department for Health and Social Care (DHSC) has introduced legislation, which took effect on 9 February 2019, allowing pharmacists to dispense prescription-only medicines under a Serious Shortage Protocol (SSP). SSPs are introduced to ensure that in the event of a serious drug shortage the effect on medical professionals and patients is minimal. A SSP allows the pharmacist to dispense medicines and medical appliances that have been prescribed by a doctor, with a medically suitable alternative.
The SSP legislation was introduced in February 2019 for prescription-only medicines and was amended in July 2019 to apply to all medicines and medical appliances.
Prescriptions that are amended under a SSP are zero-rated. They fall within the provisions of Item 1, Group 12, Schedule 8 of VATA 94.
The amount a patient pays for an NHS prescription is a statutory charge and is therefore outside the scope of VAT. The zero rate applies to the reimbursement a pharmacy receives from the NHS for fulfilling each NHS prescription.
The zero rate also applies to private prescriptions. The charge made to the patient in this case is not a statutory charge.
Background
In January 2019 it became mandatory for manufacturers to notify the DHSC if they forecast a shortage of medicines and medical appliances. This formed part of the process in place to manage emergency situations.
The DHSC launched the SSP process to help alleviate the effect of serious shortages of medicines and medical appliances on patients and medical professionals throughout the UK in emergency situations.
Once a SSP is put in place, it will allow the patient to obtain the satisfactory medication to treat them.
The patient must agree to an alternative being supplied by the pharmacist before the prescription can be fulfilled.
The scope of a SSP is a valid prescription that meets the requirements of The Human Medicine Regulations 2012. Accordingly, a SSP can apply to both NHS and private prescriptions. However, the scope of a SSP can be limited to apply to a specific type of prescription - for example to apply only to NHS prescriptions.
A SSP can instruct a pharmacist to make one of the following changes:
- quantity of medicine dispensed
- dosage of the medicine dispensed
-
type of medicine dispensed
Action to take
Where you are notified that a prescription has been amended under a SSP, the zero rate can apply subject to satisfactory compliance checks.
These involve checking whether the medicine appears on the SSP list on the NHS’ or the relevant devolved Government’s website. The shortage may apply to a particular area of the UK and to a particular period.
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