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HM Revenue and Customs Brief 48/07

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HM Revenue and Customs -Tax Authorities

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Issued 26 June 2007

VAT: introduction of a reduced rate for the supply of smoking cessation products

With effect from 1 July 2007, the supply of smoking cessation products will be eligible for the reduced rate of VAT (5%).

This relief will be in force for a period of one year and its introduction will coincide with the ban on smoking in public places in England.

Scope of the reduced rate

A new group will be added to Schedule 7A of the VAT Act 1994 to introduce the reduced rate to supplies of smoking cessation products, which are pharmaceutical products designed to help people to stop smoking tobacco.

The reduced rate will apply to non-prescribed sales of nicotine patches, nicotine gums, nicotine inhalators, lozenges and other pharmaceutical products held out for sale for the primary purpose of helping people to stop smoking.

The supply of smoking cessation products on a prescription by a medical practitioner will continue to be zero rated.

Further advice

Anyone who remains uncertain as to the liability of the supply of smoking cessation products should contact the National Advice Service.


About the Author

Crown Copyright 2007.

A licence is need to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.



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Article Published/Sorted/Amended on Scopulus 2007-06-26 21:03:15 in Tax Articles

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