Monday, 15 October 2012

PGD VAT Exemption

A bit of clarity has emerged recently about VAT exemption status of PGDs. PGDs do not amount to prescriptions because they are not written for an identified, individual patient. The supply of goods will be taxable at the standard rate however:

  • If you provide medical treatment that is exempt from VAT, any charges for medicines/appliances administered or applied to your patient in the course of the treatment is also exempt (e.g. seasonal influenza, travel vaccines). 
  • Any items that are separable from the treatment i.e. can be self administered, are not exempt from VAT and will usually be standard rated (20%) and in the case of contraception this is 5% for example, supply of EHC under a PGD would be taxed at the reduced rate.

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