VAT: Pharmacy

Treasury written question – answered on 14th January 2010.

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Photo of Mark Oaten Mark Oaten Liberal Democrat, Winchester

To ask the Chancellor of the Exchequer pursuant to the answer of 14 December 2009, Official Report, column 857W, on taxation: health professionals, if he will bring forward legislation to apply the same treatment for value-added tax purposes to pharmacy contractors and appliance contractors.

Photo of Stephen Timms Stephen Timms Parliamentary Under-Secretary (Department for Business, Innovation and Skills) (Digital Britain) (also HM Treasury), Financial Secretary (HM Treasury) (also in the Department for Business, Innovation and Skills)

The application of VAT throughout the EU is governed by agreements between the UK and its EU partners. Under these agreements, the UK is allowed to keep its existing zero rates, but may not extend their scope or introduce new ones. Therefore, it would not now be possible for the UK to remove VAT from goods supplied by appliance contractors which are not already zero-rated.

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