Drugs: VAT
The question
To ask the Chancellor of the Exchequer, whether her Department plans to review the VAT rules that apply to the supply of medicines by (a) NHS and (b) private pharmacy services.
Answered by Dan Tomlinson
The supply of drugs is subject to VAT at the standard rate unless an exception applies. One of these exceptions is that the zero rate of VAT is applied when a drug is supplied to an individual for personal use on prescription and dispensed by a registered pharmacist. These supplies may be made by the NHS or private pharmacies.
In July 2025, the Government laid the draft Human Medicines (Authorisation by Pharmacists and Supervision by Pharmacy Technicians) Order 2025, which will enable pharmacists to authorise registered pharmacy technicians to carry out, or supervise others carrying out, the preparation, assembly, dispensing, and sale and supply of medicines. The Government intends to legislate to enable medicines dispensed by or under the supervision of a registered pharmacy technician to benefit from the zero rate of VAT.
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