The Pharmaceutical Journal
Vol 274 No 7352 p668
4 June 2005

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Contract 2005

VAT and the new contract

HM Revenue and Customs has given preliminary consideration to whether or not VAT should be levied on services provided under the new community pharmacy contract, and it is in discussion with the Department of Health, the Pharmaceutical Services Negotiating Committee says.

HMRC has not, however, been in direct communication with the PSNC, and no guidance for contractors has been published. At present the PSNC is discussing the VAT implications with the Department of Health, Sue Sharpe, chief executive of the PSNC, said. “The PSNC assumes that HM Revenue and Customs will issue guidance to contractors once it has concluded its discussions with the Department of Health,” she added.