
June 2007
‘Over the counter’ sales of smoking cessation products, such as chewing gum and nicotine patches, will be subject to the reduced rate of VAT of 5%. The reduced rate will apply for a period of one year only from 1 July 2007. The dispensing of prescription items will unaffected by this change.
This temporary reduction in the VAT rate from 1 July 2007 coincides with the introduction of smoke free public and work places in England.
Internet link: HMRC budget announcement
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