VIT32200 - How to treat input tax: General Practitioners (GPs) and pre-registration VAT

GPs can only treat VAT incurred on goods purchased for dispensing that are:

• on hand at the date of registration; and
• to be used to make zero rated supplies

as if it were input tax. The tax should be reclaimed on the first return.

HMRC does not normally allow tax incurred on services to be treated as if it were input tax. However, if a GP can show that the services were used in the making of the zero rated supply of goods, and the services were received not more than six months before the date of registration, the tax may be recovered on the first return as if it were input tax.