The Value Added Tax (Drugs and Medicines) Order, SI 2020/250, ensures that VAT zero-rating continues to be available for drugs dispensed by approved medical practitioners practising both inside and outside the UK before and after the end of the transition period for the UK’s withdrawal from the EU on 31 December 2020.
The change is necessary to reflect amended definitions within the Human Medicines Regulations 2012 which will apply from the end of the transition period.
The order provides that the definition of ‘appropriate practitioner’ in UK VAT legislation will include the following:
‘EEA health professionals’ in relation to supplies made on or after 1 April 2020 but before 31 December 2020; and
‘approved country health professionals’ in relation to supplies made on or after 31 December 2020.
The order comes into force in relation to the definition of ‘EEA health professionals’ on 1 April 2020 and in relation to the definition of ‘approved country health professionals’ on 31 December 2020.
HMRC consulted during October 2019 on a draft of the order and will in due course update the draft tax information and impact note published alongside the consultation.
The Value Added Tax (Drugs and Medicines) Order, SI 2020/250, ensures that VAT zero-rating continues to be available for drugs dispensed by approved medical practitioners practising both inside and outside the UK before and after the end of the transition period for the UK’s withdrawal from the EU on 31 December 2020.
The change is necessary to reflect amended definitions within the Human Medicines Regulations 2012 which will apply from the end of the transition period.
The order provides that the definition of ‘appropriate practitioner’ in UK VAT legislation will include the following:
‘EEA health professionals’ in relation to supplies made on or after 1 April 2020 but before 31 December 2020; and
‘approved country health professionals’ in relation to supplies made on or after 31 December 2020.
The order comes into force in relation to the definition of ‘EEA health professionals’ on 1 April 2020 and in relation to the definition of ‘approved country health professionals’ on 31 December 2020.
HMRC consulted during October 2019 on a draft of the order and will in due course update the draft tax information and impact note published alongside the consultation.
