Irish court case related to a situation where a manufacturer of medical products provided volume based rebates to private health insurance companies

Ireland – Appeal Commissioners’ Cases

95TACD2021 – Appellant v Revenue Commissioners –24 June 2021

This case relates to the application of the Elida Gibbs and Boehringer EU VAT cases in an Irish context.

More specifically, the case related to a situation where a manufacturer of medical products provided volume based rebates to private health insurance companies, whether that resulted in a reduction in the consideration received by the Appellant and whether the Appellant is entitled to a repayment of VAT for the rebated amount (in line with the aforementioned cases).

Drawing extensively from a number of EU VAT cases, including Elida Gibbs and Boehringer, the Tax Appeals Commission (TAC) found that it was a matter of fact that the Appellant granted discounts to the insurance companies in respect of the reimbursement payments to the private hospitals.

Source Deloitte

See also

• ECJ Case C-317/94 – Elida Gibbs Ltd. – Money back and discount coupons – Taxable amount to be adjusted
• ECJ Case C-462/16 – Boehringer Ingelheim Pharma GmbH & Co. KG – Judgment – Discounts reduce the VAT value of pharmaceutical supplies