VAT zero rate on donated medicines clarified from June 2026

HMRC has published guidance on the VAT treatment of medicines provided at no cost, confirming when businesses can apply the zero rate of VAT to donated pharmaceutical supplies. The policy clarifies eligibility criteria and conditions for claiming the zero rate on free medicine distributions. This guidance takes effect from 23 June 2026 and applies to organisations supplying medicines without charge.

Source: HMRC (GOV.UK) – Read the original