FAQ – Another PA Item Query


Thank you for the recent webinar with regards to PA VAT and Profitable Dispensing.

Can you point me in the right direction to find the list of HMRC PA Items? As this has got me slightly worried on how I divide by monthly drug statements between PA Items and Dispensing items. 

At the moment I am highlighting our PA Items (Not the HMRC items) and would like to make sure that the VAT I am claiming back is correct.

Greg’s Answer:

Anything which is actually personally administered on site is PA with regards to VAT and HMRC.

Anything which is taken away is classed as Non PA by HMRC.

Anything which is classed as PA by NHS BSA gets the vat element after clawback paid to the practice – it is this which is shown as VAT on your PCSE statement.

This VAT element from NHS BSA is paid to you automatically.

Alastair’s Answer:

Greg’s summary is spot on!

There is no defined list from HMRC for PA items.

The answer to whether they will regard it as PA lies in the answer to the question:

“Where was this product administered to the patient?”


In the surgery – It is a PA and the practice cannot claim back VAT from HMRC

(If it is deemed as PA by NHS – then you will at least get the allowance for VAT back)

At home – ie it was taken away from the surgery by the patient or their representative – it is not PA and the practice can reclaim VAT

(Even if it is an item deemed as PA by NHS – eg Insulin injections)

Solution to dealing with this is “Processes”.