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Drugs: VAT

Asked by Mr Andrew SnowdenConservativeTreasuryTabled Answered 8 July 2026UIN 15782

The question

To ask the Chancellor of the Exchequer, with reference to written statement HCWS177 published on 2 July 2026, whether the Government has assessed the compatibility of its proposed changes with the UK's international obligations relating to VAT.

Answered by Dan Tomlinson

In response to an oral question on 23 June, I announced that the government will take forward a new approach on VAT on free-of-charge donations of medicines, consisting of either changes to the VAT rules or a reimbursement scheme.

The Government is currently engaging with stakeholders on the details of these options and will ensure it upholds the UK's international obligations relating to VAT.

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