The Pharmaceutical Journal
Vol 274 No 7350 p601
21 May 2005

This article
Reprint   Photocopy

  Acrobat Reader

News summary

Related websites
Contract 2005

New contract VAT concerns

VAT implications of the new contract arrangements were raised at the National Pharmaceutical Association’s board of management’s April meeting and at last week’s Pharmaceutical Services Negotiating Committee meeting.

The VAT implications of new contract services have yet to be resolved with HM Customs and Excise and the NPA board believes this will cause worry and uncertainty for contractors. The NPA board is concerned that, since pharmacists’ remuneration will no longer be centred almost exclusively around dispensing, it may no longer be zero-rated for VAT purposes. Whatever scheme is devised, it should be cost neutral for contractors, the board believes.