The Value Added Tax (Drugs and Medicines) Order 2023

Made: 14th September 2023

Laid before the House of Commons: 18th September 2023

Coming into force: 9th October 2023

The Treasury make this Order in exercise of the powers conferred by sections 30(4) and 96(9) of the Value Added Tax Act 1994[^f00001].

Citation, commencement and effect

1

• (1) This Order may be cited as the Value Added Tax (Drugs and Medicines) Order 2023 and comes into force on 9th October 2023.

• (2) The modifications made by article 2 have effect in relation to supplies made on or after 9th October 2023 and before 1st April 2027.

Modification of Schedule 8 to the Value Added Tax Act 1994

2

• (1) In Schedule 8 to the Value Added Tax Act 1994[^f00002] (zero-rating), Group 12 (drugs, medicines, aids for the disabled, etc.) has effect as if—

• (a) after item 1 there were inserted—

(1A) The supply of qualifying goods to an individual where the goods are supplied to the individual— (a) for the individual’s personal use, (b) in accordance with a patient group direction issued under the Human Medicines Regulations 2012[^f00003] (S.I. 2012/1916), and (c) either— (i) by a registered pharmacist, or (ii) in accordance with a requirement or authorisation under a relevant provision.

• (b) in Notes (1), (2A), (2C), (2D) and (5A), for “item 1” there were substituted “items 1 and 1A”;

• (c) after Note (2D) there were inserted—

(2E) In item 1A “patient group direction” has the meaning given in regulation 213 of the Human Medicines Regulations 2012.

Signed

Andrew Stephenson — Stuart Anderson — Two of the Lords Commissioners of His Majesty's Treasury — 14th September 2023

Explanatory note

(This note is not part of the Order)

Explanatory Note

This Order applies a temporary zero-rate of value added tax to the supply of drugs and medicines in the UK to a person for personal use in accordance with a patient group direction made under the Human Medicines Regulations 2012 (S.I. 2012/1916) for a fixed period from 9th October 2023 up to and including 31st March 2027.

Article 1 sets out the citation and commencement date of this Order, and the period for which the modifications made by the Order will have effect.

Article 2 temporarily modifies Group 12 of Schedule 8 to the Value Added Tax Act [1994 (c. 23)](https://www.legislation.gov.uk/ukpga/1994/23), so it should be read as if a new item and notes were temporarily inserted which together describe the goods supplied in accordance with a patient group direction that will attract the temporary zero-rate.

A Tax Information and Impact Note covering this instrument will be published on the government website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

Footnotes

[^f00001]: 1994 c. 23. Section 96(9) was amended by section 99(6) of, and paragraph 5 of Schedule 31 to, the Finance Act 2001 (c. 9).

[^f00002]: Group 12 was relevantly amended by paragraphs 4 and 7(a) and (c) of Schedule 7 to the Finance Act 2017 (c. 10) and paragraphs 1 and 94(1) and (5)(a) of Schedule 8 to the Taxation (Cross-border Trade) Act 2018 (c. 22). Group 12 was also amended by S.I. 1995/652, 1997/2744, 2006/1914, 2009/2972, 2012/1909 and 2013/349; there are other amending instruments but none is relevant.

[^f00003]: S.I. 2012/1916; relevant amending instruments are S.I. 2013/235, 2015/323, 2015/1503, 2016/186, 2018/199, 2018/378, 2019/775, 2020/1488, 2020/1594, 2021/1452, 2022/350 and 2022/634.