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VAT exemption on prescribed medicines clarified

August 4, 2023 12:53 pm

Consumers have been reminded that the Value Added Tax exemption on prescribed medication will not apply if pharmacists recommend alternative medications when they do not have the one prescribed by the doctor.

This as prescribed medicines have also been included in the list of zero-rated items.

Consumer Council Chief Executive, Seema Shandil says consumers need to exercise caution and do comparative shopping.

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She says this is to ensure that they shop at a pharmacy that has the medication prescribed by their doctor to ensure the VAT exemption applies.

“What we have seen is that there are certain pharmacies who have put up notices that if you are on a repeat prescribed medication VAT exemption will only apply on the initial purchase, not on the repeat or follow up that will come after the initial purchase, but what we want consumers to note is that VAT exemption on prescribed medication continues to apply for the successive repeat prescriptions and not only the first or initial purchase.”

Shandil further adds that VAT exemption is intended to reduce the financial burden on consumers when purchasing essential prescribed medication.

She says it is crucial that pharmacists adhere to the original prescription and not suggest alternative drugs without the consent of the prescribing doctor or without clearly informing consumers that they will not quality for VAT exemption.

Shandil says pharmacies are also reminded to apply the VAT exemption on electronic prescriptions and not only hard copies.