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VAT: Pharmacy

Volume 503: debated on Thursday 14 January 2010

To ask the Chancellor of the Exchequer pursuant to the answer of 14 December 2009, Official Report, column 857W, on taxation: health professionals, if he will bring forward legislation to apply the same treatment for value-added tax purposes to pharmacy contractors and appliance contractors. (310675)

The application of VAT throughout the EU is governed by agreements between the UK and its EU partners. Under these agreements, the UK is allowed to keep its existing zero rates, but may not extend their scope or introduce new ones. Therefore, it would not now be possible for the UK to remove VAT from goods supplied by appliance contractors which are not already zero-rated.