Page 31 - P4304.1-V116 PS Mag December 3_Neat
P. 31
Q We sometimes dispense private prescriptions and were
always of the understanding that we should charge VAT
on the supply. We have a PCN pharmacist in the practice
and he says that we should not be charging VAT on private
prescriptions. Please can you help with what we should be
doing. Have we been wrong all this time?
The answer, you will be pleased to know, is no. You are correct in charging VAT.
Let me explain because it is complicated. When a GP dispensing practice
supplies medicines on a private prescription, that supply is subject to VAT at
the standard rate (20%). This is because HMRC treats a dispensing doctor’s A
supply of drugs as a sale of goods, not an exempt medical service, when
it falls outside NHS dispensing. In contrast, when a registered pharmacist
dispenses a private prescription directly to a patient for their personal
use, HMRC views that as part of an exempt medical care service, so no
VAT is charged. These rules are set out in HMRC VAT Notice 701/57 (Health
professionals and pharmaceutical products), particularly section 4.4 for
dispensing doctors and section 6.3 for pharmacists.
Q When a medication goes onto concession what should we be
endorsing on the prescription?
When a generic medicine is listed in the Drug Tariff (Part VIIIA) and later
goes on price concession, it means NHS England (via DHSC) has temporarily
agreed to reimburse pharmacies and dispensing doctors at a higher price
than the usual Drug Tariff listed price, because the market price has risen
and contractors cannot purchase it at or below the Tariff price.
So, a “price concession” = temporary uplift in reimbursement price for that
generic.
It’s normally reviewed monthly, and applies only for the month it’s announced, A
unless renewed.
Does the NHS prescription need an endorsement?
No endorsement is needed on the prescription for a concessionary-priced
generic. The price concession applies automatically to all prescriptions
for that generic, regardless of endorsement, as long as the product was
prescribed generically, appears in the DHSC’s published concession list for
that month, and It is dispensed within that calendar month.
The Pricing Authority (NHSBSA) automatically applies the concessionary
reimbursement price when processing claims so don’t waste your ink
endorsing!
If you have any questions, don’t hesitate to get in touch
carolinepond@chasepeople.com
Customer Mailbox | PS Magazine 31
18/11/2025 11:41:53
P4304.1-V116 PS Mag December.indd 31
P4304.1-V116 PS Mag December.indd 31 18/11/2025 11:41:53
