Accountants for retail pharmacies in Ireland, mixed VAT rates, PCRS income, one clean set of books
A community pharmacy is one of the most VAT-complicated businesses on the high street. Oral medicines are zero-rated, injectables are not, services can be exempt, and the till has to know the difference. Add PCRS income and stock, and the accounts need real care.
Check the VAT rate on a product
What VAT rate applies to this product?
A pharmacy sells goods at several VAT rates through the same till. Pick a product to see the rate Revenue applies and why.
Based on Revenue guidance on human medicines, last reviewed May 2025. We check every Budget for changes.
Four things to remember about pharmacy VAT
Where a pharmacy earns
- GMS, Drugs Payment Scheme and Long Term Illness claims
- Monthly statements to reconcile
- PSWT credits where deducted
- Mixed VAT rates by product
- Dispensing fee follows the medicine
- Till codes must be right
- Vaccinations can be exempt
- Some services are taxable
- Keep each service coded separately
- Cosmetics and general goods
- Mostly standard rate, check each line
- Stock control and margins
What your accountant should be checking
Four pharmacy VAT myths
A pharmacy accounts checklist
Questions about accountants for retail pharmacies
Are medicines zero-rated for VAT?
Human medicines for oral consumption that are authorised by the HPRA are zero-rated. Non-oral medicines are standard-rated, except non-oral hormone replacement and nicotine replacement, which have been zero-rated since 1 January 2023.
What VAT applies to dispensing fees?
They follow the medicine: zero rate for oral medicines and HRT and NRT, standard rate for other non-oral medicines.
Which pharmacist services are VAT-exempt?
Revenue lists flu, COVID-19, pneumococcal and zoster vaccinations, emergency hormonal contraception and the Common Conditions Service. The Medicines Optimisation Support Service is not exempt.
What are the PCRS schemes?
The pharmacy is reimbursed for GMS, Drugs Payment Scheme and Long Term Illness claims, and each monthly statement should be reconciled.
What is PSWT for a pharmacy?
A 20% withholding that may be deducted from payments to primary care contractors. You claim it back as a credit, and it shows on ROS.
How should the till be set up for VAT?
Every product needs the right VAT code, because the same till sells zero-rated, standard-rated and exempt items.
Can I run the pharmacy through a company?
Many pharmacies do. We model the tax before you decide.
What happens when I sell the pharmacy?
Tax reliefs may help on a sale, but they have conditions, so talk to us before you agree a price.
Related guides
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Accounts, VAT and PSWT for GP and consultant practices.
VATVAT filing and compliance
Returns, deadlines and keeping your VAT records straight.
PAYROLLPayroll services
PAYE, PRSI and Revenue submissions handled on time.
Running a community pharmacy?
Tell us how your till is coded and how you reconcile PCRS. We will find the gaps before Revenue does.
- Your till or EPOS system
- Your PCRS statements
- Your VAT returns for the last year
- Your stock method
Contact Us
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