Discount granted by a pharmaceutical company to a private health insurance company results in a reduction of the taxable amount in favour of that pharmaceutical company. The fact that the direct beneficiary of is not the private health insurance company which reimbursed the insured persons but the insured persons themselves is not to affect the consequence regarding the taxable amount.
Where VAT was initially calculated on the price that is subsequently decreased, vendor is entitled to recover the overpaid VAT amount. That decision of the Court stresses that the concept of “price effectively paid” must be ascertained for the supplier regardless the beneficiary of discount. Similar situations prove to exist in many economic sectors involving complex schemes of distribution (food, automotive, home furniture etc.).
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