HMRC internal manual

VAT Health

VATHLT2540 - Pharmacists: Introduction

The main activity undertaken by pharmacists is the dispensing of drugs to customers in accordance with a doctor’s prescription. Drugs dispensed in this way are zero-rated and the guidance at section VATHLT6000 covers this activity more fully. However, the supply of services by a pharmacist registered in the register of pharmaceutical chemists kept under the Pharmacy Act or the Pharmacy (Northern Ireland) Order 1976 is exempt from VAT, and this sub-section explains the scope of that exemption