The Dutch Court of First Instance has found in favour of the taxpayer in a case involving indirect rebates paid to pharmaceutical companies. In essence, the court granted a refund of VAT to a pharmaceutical company based on the CJEU Boehringer case (C-462/16), although the pharmaceutical company was not obliged to grant the rebates under national law. Although the case was concerned with price arrangements with the Minister of Health, Welfare and Sport, it is possible that the same rationale could be applied to other rebate schemes, such as rebate arrangements between pharmaceutical companies and insurance companies.Continue reading VAT refund due to taxpayer on pharmaceutical rebates
The EU Commission has adopted a proposal, allowing the EU Member States to apply a zero rate VAT rate on Covid-19 vaccines and testing products. Currently, Member States can apply reduced VAT rates on sales of vaccines, but cannot apply a zero rate, while testing kits cannot benefit from reduced rates. As a consequence, different EU Member States might be adopting such a zero/reduced rate in the next coming months for these products (they are not obliged to).Continue reading EU Commission welcomes agreement on crucial VAT relief for COVID-19 vaccines and testing kits
Animal nutrition company BIOMIN America was fined by more than $250’000 for coordinating sales of agricultural commodities to a company in Cuba without authorization from OFAC (US Office of Foreign Assets Controls).Continue reading OFAC fined US subsidiary of Austrian ERBER Group after misinterpreting US Sanctions
As an effort to limit the impact of COVID-19, the Belgian government has introduced a temporary relief measure whereby certain goods imported into Belgium can benefit from a VAT and duty exemption.
A key condition to benefit from said exemption entails the importation by a so-called recognized healthcare institution (almost all Belgian hospitals qualify as such an institution).Continue reading Will you change your supply chain to benefit from a VAT and duty free importation into Belgium?
Medical devices suppliers conducting agreements for allowing hospitals to use free of charge their equipment might face both VAT and corporate tax adverse implications.Continue reading Cutting edge tax implications for medical devices suppliers in Europe
1. The background in a nutshell
- Until 25th May 2020 all Medtech products that are admitted in Switzerland for the sale can be distributed also in the EU.
- However, currently a new treaty is negotiated by Switzerland and the EU Joint Committee in that regard.
- In case the treaty is not going to be concluded between Switzerland and the EU, all Medtech companies based in Switzerland are considered as not being anymore part of the EU. Indeed this treaty hangs by a hair.
Following the latest developments of the Swiss-EU negotiations concerning the Institutional Agreement and the Mutual Recognition Agreement (MRA), Swiss Medtech companies should be preparing for the case in which MRA would no longer apply to the medical devices after 26th May 2020.Continue reading Swiss Medtech companies – action required for the sale of products in the EU as per May 2020 – Is your business ready for the upcoming changes?
I hope you had a relaxing summer time.
Do you face troubles in order to be up to date with all the required legislation changes in various countries in the Regulatory Pharma & Life Sciences field AND combine it with your supply chain and tax strategy?
I am happy to inform you that we have recently launched our Pharma & Life Sciences Regulatory Radar, to strive to assist you in that regard.Continue reading Cutting Edge Digital Solution – Pharma & Life Sciences Regulatory Radar
Do you perform Clinical Trials in Europe and are want to be informed of the respective VAT consequences?
Together with my Pharma VAT colleagues from PwC I collected the data and organised for the set up of the PwC “VAT Guide to Clinical Trials in Europe”.
I am pleased to invite you to have a closer look at the countries of your interest:Continue reading A Guide to VAT for Clinical Trials through Europe
Hope you had a good start into 2019.
As you may already gathered through the press the referendum for the Swiss Tax Bill and AHV-Financing (Steuervorlage und AHV-Finanzierung – STAF) has been launched with success.
The respective popular vote will take place in spring, i.e. on 19 May 2019.
A lot of pharma and life sciences companies are currently dealing with the question what will STAF mean for them.
- Introduction of patent box – mandatory at cantonal level
- Introduction of the special deduction for R&D costs – optional for the cantons (this deduction may not exceed 50% of the relevant R&D expenditure in Switzerland)
Tax advantages for income from patents/intellectual rights are intended to promote research and development activities and corresponding value creation. The legislation text defines which patents or comparable rights qualify for patent box taxation. In accordance with the international OECD standard, the Nexus approach will apply either by patent, by product or by product family.
For further details please contact Armin Marti or me via the usual way.
Partner & Leader Tax Policy ,
Zurich, PWC Switzerland
+41 58 792 43 43