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Dispensing GPs warned over VAT

Dispensing GPs have been issued with a stern warning not to game the new VAT system.

The Department of Health said it would 'come down hard' on practices that sought to claim VAT on dispensed drugs for which they had already received an allowance.

It said it issued the warning after hearing of financial advisers telling dispensing practices they could receive double payments by backdating their VAT registration.

Practices which did this and did not request a retrospective exemption would face having to pay back thousands in VAT.

The department said: 'If a dispensing GP obtains a backdated VAT registration he will have reopened the question of entitlement to any VAT allow-ances paid to him by the NHS.'

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