As previously announced in the Spring Budget 2023 the VAT treatment of medical services carried by staff directly supervised by pharmacists will be exempt from VAT from 1 May 2023.
Background
Under current VAT legislation, the supply of services consisting in the provision of medical care by certain registered health professionals is an exempt supply for VAT, and this VAT exemption extends to include non-registered staff providing medical services where directly supervised by those registered health professionals. Similarly, exempt from VAT (but under a separate item of the VAT legislation) is the supply of services consisting in the provision of medical care by a person registered in the register of pharmaceutical chemists, however to date this exemption did not extend to include the services of supervised non-registered staff.
The change in the VAT legislation recognises the difference between the two items in the legislation and brings the VAT treatment of pharmacists in line with other registered health professionals providing medical services, in doing so this should encourage pharmacies to offer a wider range of clinical services to the public and help ease the pressure on GPs and the NHS.
Please contact us at the earliest opportunity if you have any questions.