- ECJ issued a preliminary ruling on VAT reduction for Novo Nordisk
- Novo Nordisk tried to reduce VAT liability through corrected return based on payments to Hungary’s health insurance agency
- Background: Novo Nordisk submitted corrected VAT return, but was rejected by tax authority
- ECJ ruled that pharmaceutical companies can reduce taxable amount for payments to health insurance agency
- Taxable amount can be reduced by deducting price volume agreement payments
- Research and development expenses in health sector are also eligible for reduction
Source: globalvatcompliance.com
See also
- C-248/23 (Novo Nordisk) – Judgment – Reduction taxable amount on ex lege payments to the State health insurance agency
- Roadtrip through ECJ cases: Focus on Promotional activities/Discounts (Art. 79, 87, 90(1))
- C-462/16 – Boehringer Ingelheim Pharma GmbH & Co. KG – Discounts reduce the VAT value of pharmaceutical supplies
- C-717/19 – Boehringer Ingelheim – Reduction of the taxable amount – Agreement between pharmaceutical company and health insurer
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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