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Dr Beynon (House of Lords)

This case concerned the proper VAT treatment of drugs administered by NHS doctors in rural areas who are also authorised to separately dispense drugs to patients, pursuant to Regulation 20 of the National Health Service (Pharmaceutical Services) Regulations 1992 (SI 1992/662).

The specific dispute in this case only concerned those NHS doctors who were registered for VAT and who, as part of their services to rural communities, were also authorised to dispense drugs. Those doctors, when dispensing drugs to patients for self-administration were effectively acting as pharmacists. There was no dispute between the parties that whenever such a doctor, duly authorised pursuant to Regulation 20, dispensed drugs without administering them, the supply fell to be regarded as a zero-rated supply of goods, pursuant to VATA 1994 Sch 8 Group 12 Item 1A(a).

In essence, Dr Beynon argued that, when administering drugs such as vaccines, two separate supplies arose: an exempt supply of medical services and a zero-rated supply of goods (eg the vaccine itself). The Commissioners contended that only a single supply of exempt medical services arose. The Commissioners had been successful before the Tribunal and on appeal to the High Court. That judgment had been overturned by the Court of Appeal.

Lord Hoffman, with whom their Lordships agreed, allowed the Commissioners appeal.

Melanie Hall QC and Valentina Sloane represented HM Customs & Excise. 

To read our case note, please click here.

To read the judgment, please click here.

For more information on the members involved, please click below:
Valentina Sloane
Melanie Hall QC