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Bad medicine?

16 March 2006 / Simon Anslow
Issue: 4049 / Categories: Comment & Analysis , VAT
SIMON ANSLOW provides his rough guide to VAT and dispensing doctors.

APRIL FOOLS' DAY — 1 April 2006 — is 'D-Day' for doctors for this is the date from which recently announced charges by the National Health Service and the General Medical Council come into effect in respect of the way dispensing practices are reimbursed for the cost of dispensed drugs. No longer will such practices receive a VAT allowance for dispensed drugs requiring them to register for VAT with effect from 1 April 2006 if they wish to make any form of VAT recovery irrespective of the level of their 'taxable' income.
Under the current soon to cease arrangements the Prescription Pricing Authority (PPA) manages the reimbursement of the cost of dispensing drugs to the respective practices. This includes an allowance for amongst others containers dispensing fees cost of drugs and VAT and relates both to 'across the counter'...

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