HMRC Prescribes Exemption Extension for Pharmacies
The UK government has recently extended the deadline for pharmacies to claim VAT exemption on prescription medicines. This exemption, which was due to end in March 2022, has now been extended by HM Revenue & Customs (HMRC) until 31st March 2023. This is great news for pharmacies, who will be able to continue to save money on their VAT bills for another year. In this blog post, we’ll take a closer look at the details of this extension and what it means for pharmacies.
Background:
The VAT exemption on prescription medicines was introduced in 1973 to reduce the public’s healthcare cost. The exemption applies to most prescription medicines and enables pharmacies to purchase these items without paying VAT. Over the years, the exemption has been extended and refined, with the aim of making healthcare more accessible and affordable for everyone.
Extension Details:
The extension of the VAT exemption for pharmacies was announced by HMRC in October 2021, and it extends the deadline from 31st March 2022 to 31st March 2023. This extension applies to all pharmacies across the UK, and it means that pharmacies can continue to purchase prescription medicines without paying VAT for another year.
Impact on Pharmacies:
The extension of the VAT exemption on prescription medicines is good news for pharmacies, who will be able to continue to save money on their VAT bills for another year. This will help pharmacies to manage their finances more effectively and ensure that they can continue to provide essential healthcare services to their communities.
To take advantage of the VAT exemption, pharmacies must ensure that they are purchasing prescription medicines covered by the exemption. They will also need to keep accurate records of their purchases and sales to stay compliant with HMRC regulations.
Conclusion:
The extension of the VAT exemption on prescription medicines is a positive development for pharmacies and the wider healthcare sector. It will help pharmacies to save money on their VAT bills and ensure that they can continue to provide essential healthcare services to their communities.
It’s important for pharmacies to stay compliant with the new regulations and take advantage of the extension before the new deadline of 31st March 2023. By doing so, they can continue to contribute to the wellbeing of their communities and the wider healthcare sector.