Commentary to ECJ C-717/19 (Boehringer Ingelheim) – Contractual discount to health insurer leads to lower VAT

The ECJ has ruled that a contractual discount by a German-Hungarian pharmaceutical company to a private health insurer leads to a reduction in the tax base for VAT. The German-Hungarian pharmaceutical company is therefore entitled to a VAT refund.

The European Court of Justice (CJEU) has ruled that the refusal of the Hungarian tax authorities to allow a subsequent reduction of the taxable amount is contrary to the EU VAT Directive. BI may deduct the payment to the NEAK from its taxable amount for VAT. The VAT already paid by BI on declaration must be reduced to that extent. No registered (credit) invoice is required for such a VAT reduction, which shows that the supplies giving rise to the refund have been made. The execution of the relevant transactions may be demonstrated by other means.

Source PwC NL

See also

• ECJ C-717/19 (Boehringer Ingelheim) – Judgment – Reduction of the taxable amount even if not established on a commercial policy
• Roadtrip through ECJ Cases – Focus on ”Discounts” (Art. 90)

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