ECJ case C-802/19 (Firma Z) – Questions – Price discounts and intra-Community supply of medicines

The European Court of Justice received preliminary questions in case C-802/19 (Firma Z).

Unofficial translation/summary:

  • Pharmacy Z supplied in 2013 prescription medicines from NL to DE.
  • On the one hand to persons who had a public health insurance policy and on the other hand to persons with a private health insurance.
  • In both cases Z questionnaires were completed, which classified the payments as reimbursement of expenses (“price discounts”).
  • Supplies to persons with public insurance were charged to the legal health insurance companies, which reimbursed this from social security collections.
  • For these supplies, Z assumed since 1 October 2013 that the place of supply was in NL, and that supplies qualified as intra-Community supplies.
  • Z also assumed that the legal health insurers were obliged to report intra-Community acquisitions in DE.
  • Moreover, Z assumed that the price discounts reduced the taxable base.
  • The German tax authorities did not agree.
  • The question is, among other things, whether a pharmacy, that supplies medicines to a public insurance, is entitled to a reduce the taxable base for granting a price discount to the insured persons.
  • If yes, is it contrary to the principles of neutrality and equal treatment in the internal market when a domestic pharmacy can reduce the taxable base, but a pharmacy that operates from another Member State cannot.

Source: (Dutch/not published yet)

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