We have recently advised several NHS entities on the VAT implications of setting up subsidiary companies for the outsourcing of pharmacy activities.
Our advice included outlining the VAT implications, with regard to the establishment by the Trust, of an independent pharmacy trading company to operate on the Trust’s site and which will be responsible for the purchase of drugs and their dispensing to outpatients on prescription for their own self-administration at home.
VAT implications included:
- Lease of the Pharmacy premises
- Service Charges
- Drug Purchases and supplies
- Staffing issues
- Capital expenditure including Pharmacy Robot
- Pharmacy company set-up and VAT registration
- Dispensed drugs delivered to Trust’s premises
- HMRC approval