VAT Changes in 2023

Published on: 31st March 2023 | Updated on: 8th November 2023

VAT exemption extended for healthcare services carried out by unqualified staff under the direct supervision of registered pharmacists in UK

It’s good to see that HMRC is confirming consistency across UK health professionals including pharmacists, so that from 1 May 2023 VAT exemption will apply to healthcare services carried out by unqualified staff, where those staff are delivering the services under the direct supervision of qualified pharmacists.

This change may increase the VAT exempt income of some pharmacies and impact on their partial exemption VAT reclaim position and it will also be essential to understand what’s meant by direct supervision in this context.

Zero rating of prescriptions issued through Patient Group Directions

HMRC’s policy on the above has been to standard rate them but from the Autumn of this year (date to be confirmed) pharmacies that are involved in this type of prescription can zero rate them as they do patient-specific prescriptions.