- Prescription drugs in Hungary are partly paid for by patients and partly subsidised by NEAK
- NEAK may recover part of its subsidies from manufacturers through agreed volume rebates
- Manufacturers must also pay up to 20% of the subsidies to NEAK under Hungary’s law on medicinal products
- CJEU ruled that manufacturers could reduce their output tax accordingly
- CJEU concluded that statutory payments should be treated the same as volume rebates for VAT purposes
- Novo Nordisk was waiving a proportion of the consideration received in making the payments
- Output tax could be adjusted accordingly for the reduction in consideration
- First-tier Tribunal is considering a sequence of CJEU judgments on healthcare sector rebates in the Boehringer Ingelheim Ltd appeal.
Source: taxscape.deloitte.com
See also
- C-248/23 (Novo Nordisk) – Judgment – Reduction taxable amount on ex lege payments to the State health insurance agency
- Roadtrip through ECJ cases: Focus on Promotional activities/Discounts (Art. 79, 87, 90(1))
- C-462/16 – Boehringer Ingelheim Pharma GmbH & Co. KG – Discounts reduce the VAT value of pharmaceutical supplies
- C-717/19 – Boehringer Ingelheim – Reduction of the taxable amount – Agreement between pharmaceutical company and health insurer
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
