A UK tribunal decision in 2024 may allow U.S. biopharma firms with UK operations to claim VAT refunds on prior NHS sales, potentially unlocking up to £2.5 billion. The ruling is under review by the Upper Tribunal, with a judgment expected within the next three to four months. Companies must notify HMRC and register protection claims now to preserve their right to recover VAT within a four‑year window.
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Key Takeaways
It could allow them to claim VAT refunds on prior NHS sales, potentially unlocking up to £2.5 billion in recoverable VAT.
Adjustments can only be made for transactions that occurred within the previous four years.
A judgment is expected within the next three to four months from March 18 2026, i.e., around June–July 2026.
They should notify HMRC that they are affected and register protection claims immediately.
No, VAT obligations arise based on where the product is sold, so U.S. manufacturers with sales outside the UK may also have overpaid VAT.
Primary source
Read the full article at RSM USThis summary was published on VATfaqs.com on 18 March 2026. It relates to VAT developments in United Kingdom. The original source is RSM US.
