Vol. 413 No. 2
75 Mr. Nealon asked the Minister for Finance if he will outline the VAT charges which are to be imposed on veterinary surgeon charges for services and on veterinary medicines from 1 January 1992; the estimated extra cost of this to farmers; and if he will make a statement on the matter.
Services supplied in the course of their profession by veterinary surgeons will become liable to VAT at the rate of 12.5 per cent with effect from 1 January 1992. There will be no change in so far as the supply of veterinary medicines is concerned; oral medicines will remain taxable at the zero rate while non-oral medicines will continue to attract the 21 per cent rate.
It is estimated that the additional cost to farmers from the imposition of a 12.5 per cent VAT rate on veterinary services from 1 January 1992 would be £4.5 million. In the normal course of events, additional costs to unregistered farmers are dealt with through the flat-rate credit system, while registered farmers are able to claim deductibility in their VAT returns.
