Drugs: VAT
The question
To ask the Chancellor of the Exchequer, whether medicines provided free under Early Access Medicines Scheme programmes are liable for output VAT.
Answered by Dan Tomlinson
Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval.
There are special VAT rules for the supply of goods without payment. Whether VAT applies will depend on the precise facts of the case. In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.
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