V16.909 Dispensing doctors and VAT registration—how and when to register; taxable or exempt supplies; VAT recovery and what records need to be kept
information Sheet 3/06, February 2006
1.1 What is this Information Sheet about?
Following changes in Department of Health funding, effective from 1 April 2006, dispensing doctors who wish to recover VAT incurred on the drugs they dispense will need to register for VAT. This Information Sheet provides—
— Advice about how doctors can register for VAT.
— Information about the VAT treatment of the goods and services they provide.
— Advice about how much VAT can be recovered on purchases. It is intended to supplement, not substitute, existing HMRC guidance.
2.1 How and when to register for VAT
2.1.1 Before applying to register
For help with registration and for general advice on VAT matters, the CD Rom “Getting Started in VAT” can be obtained from the National Advice Service. It is recommended that doctors obtain a copy of this at their earliest convenience.
References to “doctor” or “doctors” in this Information Sheet should be taken to mean all doctors (general practitioners) who are included in any individual VAT registration eg the term “doctor” or “doctors” will apply to all doctors who have applied to be registered together as a partnership.
2.1.2 Legal entity
All dispensing doctors will need to consider how they should be registered, for example individually as sole proprietors or jointly as partnerships. The legal entity chosen should reflect actual working arrangements, so if several doctors work together in a practice,