VATHLT7000 - VAT Health: VAT treatment of drugs and medicines supplied and administered by a pharmacist under a patient group direction

A patient group direction is a written instruction that allows healthcare professionals to supply and administer specified drugs and medicines to a pre-defined group of patients without a prescription.

The VAT zero rate for supplies of drugs and medicines dispensed to individuals for their personal use has been temporarily extended to include the supply of drugs and medicines which are supplied under a patient group direction issued in accordance with the Human Medicines Regulation 2012. The temporary VAT zero rate brings patient group directions in line with the VAT zero rate for drugs and medicines dispensed on a prescription of a registered health professional. The zero rate applies from 9 October 2023 until 31 March 2027.

The new zero rate applies to supplies made by a registered pharmacist (including a pharmacy technician in Great Britain (England, Scotland and Wales)) or by a General Practitioner practice where a pharmacy is too remote and dispensing is allowed under Note 2D of Group 12 of Schedule 8 to the VAT Act 1994.

The new zero rate does not apply to vaccines and medicines administered by a health professional, for example by injection. These supplies are exempt where the service is provided by a pharmacist or other medical professional listed in paragraph 2.1 of Notice 701/57. This is because such services are regarded as medical treatment and not for personal use. The new zero rate only applies where the goods are administered by the patient.