Drugs: VAT
Commons · Question 18478 · Tabled 13 Jul 2026 · Treasury · Official record
Answered 16 Jul 2026
Question
Asked by Joshua Reynolds
To ask the Chancellor of the Exchequer, what steps her Department is taking to review the VAT treatment of medicines supplied free of charge to patients under early access schemes.
Answer
Answered by Dan Tomlinson, 16 Jul 2026
Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made - these are called deemed supplies. This is to keep the system fair if a business has reclaimed VAT on costs. This is a core and longstanding feature...