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HMRC internal manual

VAT Health

Doctors: Dispensing income

(referred to in paragraph VATHLT6180)

If a doctor is authorised to dispense drugs he will receive each month a “Statement of Dispensing Drugs Claims”. This statement shows the number of prescriptions dispensed and the payment due to GP, but it refers to all drugs which the GP has supplied to his patients - ie both takeaway dispensed drugs (zero-rated) and drugs which are personally administered by the GP (exempt). If you are unclear as to whether your doctor is actually dispensing drugs, or are not sure how to determine whether exemption or zero-rating applies, please refer to paragraph VATHLT6020 for further guidance.