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HMRC internal manual

VAT Health

HM Revenue & Customs
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Doctors: Table 2 Overview of input tax attributed to exempt and taxable supplies

(referred to in paragraph VATHLT2040)

We have outlined below a list of the most common costs incurred by a doctor and whether they are attributable to exempt or standard rated supplies or non-attributable. You should go to the sections highlighted for more information on each area.

VAT incurred on Attributable to Comments Reference
Medical equipment Exempt medical services This is unlikely to be related to ZR dispensing. A pharmacist would require very little - if any - of this equipment in his supplies of dispensing  
Drugs and medicines Standard-rated private dispensing, zero-rated NHS dispensing or exempt personal administration The GP must be able to distinguish in his records between these supplies and his method of apportionment must reflect the value of the drugs supplied for each purpose Paragraph VATHLT2140 and VATHLT6050