VAT on private prescriptions...legal or not?

baby_frogmella

Hi
I usually pay full price for Propecia on a private prescription yet my GP seems to think that Boots or Lloyds should not charge me vat. I did ask Boots about this but was told to get lost and pay the full price inc vat. Does anyone know if pharmacies can legally charge vat on private prescriptions? GP just told me its a grey area and i should research on the internet but i couldn't find anything in black & white.
Cheers

peachyprice

You'd probably be better off phoning HMRC to explain the following link properly' although it does appear that your meds may be expempt.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_CL_000121#P90_9250

pmduk

It might be worth asking the manufacturer for their opinion. It may well depend on the reason for taking it, as the one of the conditions for which it's used (male pattern baldness) may well be considered cosmetic.

baby_frogmella

In the end I stopped buying propecia from Boots, now buy it online from a uk online pharmacy ( just send them my prescription by post) as their prices are slightly lower than boots ex-vat price.

pogofish

When I had to pay for private prescriptions in Boots, I needed to sign a declaration they had in booklet form, then I got it VAT-free.

Gloomendoom

According to "Value Added Tax 2012/13" by Andrew Needham (p.223), since 1st April 2006, standard rate VAT is payable on drugs dispensed on private prescriptions but not NHS prescriptions.

Edit: The book is available on Google Books

AshfordSteve

Prescriptions for human use are exempt from VAT. However pharmacies can charge whatever they like for private prescriptions, and the policy may vary between different branches of the same company. Some pharmacies have no minimum charge, while others may have a £5-£7 min charge to take account of the time and expertise involved in dispensing. Some pharmacies may charge a 20% markup on trade price, others may charge 50%, and some may charge no markup on high cost drugs.

The best bet with private prescriptions is to shop around, and then see if your local independent pharmacy or small chain pharmacy will beat or match the best price you've found as they will often be more flexible. I know what my company's policy for private scripts is, but I also know that I am able to override that policy if needed.