United Kingdom Tax Tribunal Clarifies VAT Treatment for Supply of Cancer Medicines to Outpatients

The United Kingdom First-Tier Tax Tribunal June 5 issued a judgment in Case No. TC09544, clarifying the VAT treatment for the supply of cancer medicines to outpatients. The taxpayer, a private limited pharmaceutical company and subsidiary of a trust, sought zero-rated VAT for dispensing fees on prescription-only cancer drugs administered by healthcare professionals in patient homes. The Tax Agency denied the zero-rating, arguing that the drugs weren’t for personal use under VAT law due to professional administration and should be taxed at the standard rate. On appeal, the Tax Tribunal found that: 1) medicines dispensed to outpatients for home administration ...