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
Happy to invite you to have a look to our latest PwC Webinar on precision medicines and the respective hot topics in the VAT field for the US, Europe, Switzerland and Asia. Continue reading Webinar on indirect tax issues in Precision Medicine
I am pleased to invite you to our Webinar on Precision Medicine
and Accurate Indirect Tax
During this digital presentation our panel of experts will give you an overview of possible indirect tax implications within the pharma sector. This panel consists of many tax specialists of the pharmaceutical sector and PwC’s international indirect tax experts. Experts, who are dedicated to the pharmaceutical industry.
I will use my time slot to discuss the implications for Switzerland including which countries will be covered.
You will have the opportunity to exchange your experiences and views on the issue with other international leaders.
- Date: November 6th 2018 November 8th 2018
- Time: 10am – 11 am CET 12am – 1pm CET
Welcome back from the summer break.
VAT rates change continually in the European Union and the rest of the world
(e.g. this year’s VAT changes: Lebanon increase to 11%, Liechtenstein and Switzerland cut to 7.7%, Saudi Arabia introduction of 5%, etc.).
It is crucial to apply for the correct VAT rate (standard, reduced, super reduced rate, possible exemption), in order to comply with the local rules and regulations, benefit from possible optimizations (cash flow, input VAT deduction, correct pricing etc.) and minimize the risk of reputational damage.
For example in some countries like Ireland, your medtech products might be exempt from VAT with the possibility of respective cash flow optimizations approaches.
The further question that has to be addressed in that regard is:
On which basis do you define which VAT rate / possible exemption does apply?
Here the Customs Tariff number is key. The definition of the correct Customs Tariff number leads to the correct VAT rate application of your products. Please take into consideration the differences in the regions, e.g. 4 digit global harmonization but differences in the Sub headings – e.g. 1 digit in Switzerland / 2 digits in the European Union.
I highly recommend to review the application of the VAT rates of your products and the respective implementation in the master data of your ERP system on a regular basis – especially in the course of a possible ERP change (S/4HANA) and/or a new supply chain implementation.