Drugs: VAT
The question
To ask the Chancellor of the Exchequer, with reference to the draft regulations entitled The Human Medicines (Amendments Relating to Hub and Spoke Dispensing etc.) Regulations 2025, what the VAT status will be for any (a) fees and (b) other charges between hubs and spokes under model one.
Answered by James Murray
The rate of VAT applicable to this supply will depend on the exact nature of the arrangements. If VAT charges apply to invoices issued by the hub, a spoke should be able to recover VAT costs if they are registered for VAT and if the final supply qualifies for VAT zero rating.
VAT is a self-assessing tax and it is the responsibility of the supplier to charge, collect and pay to HM Revenue and Customs any VAT due on the supplies they make.
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