The recently issued judgment of the Polish Supreme Administrative Court related to the VAT treatment of supplies of medical device equipment (judgment of 30 July 2020, no I FSK 2120/19) is of importance to the industry.
Normally, in Poland supply of goods is subject to 23% standard VAT rate. However, with respect to Medical Devices in the meaning of the Medical Devices Act, Polish taxpayers may apply reduced VAT rate (8%). Only goods meeting definition of the Medical Device (i.a. registered as Medical Devices in a special register in Poland) were subject to 8% VAT rate. At the same time, equipment of the Medical Device (e.g. USG probes, Faraday cases – unless registered) were subject to standard VAT rate.
In the mentioned judgment the court confirmed that for the purposes of i.a. the Polish VAT Act, the equipment for medical devices should be treated the same way as medical devices itself within the meaning of the Polish Act on Medical Devices. As a consequence, the supply of products being an equipment for medical devices may be subject to the reduced VAT rate.
Source Mihaela Merz
