Novo Nordisk : AG ECJ advises to consider ex lege payment obligations as a price reduction rather than a special tax
On June 6, 2024, Advocate General (AG) Ćapeta delivered an opinion in the case of Novo Nordisk (C–248/23). This opinion follows a preliminary question from Hungary seeking clarification on whether certain payments imposed by Hungarian legislation, calculated based on the price of subsidized medicines,
should be treated for VAT purposes as a price reduction or as a tax. The AG believes that it constitutes a price reduction, and that the interested party has
the right to a retrospective reduction of the taxable amount. It remains to be seen whether the Court of Justice of the European Union (“ECJ”) will follow the conclusion of AG Ćapeta.
should be treated for VAT purposes as a price reduction or as a tax. The AG believes that it constitutes a price reduction, and that the interested party has
the right to a retrospective reduction of the taxable amount. It remains to be seen whether the Court of Justice of the European Union (“ECJ”) will follow the conclusion of AG Ćapeta.
Source Deloitte
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