- The Boehringer Ingelheim case could fundamentally change how VAT is treated for UK and EU healthcare and pharma pricing schemes, with £2.5 billion at stake.
- The legal question is whether payments under schemes like VPAG and PPRS are post-supply price reductions, making them eligible for VAT adjustment.
- The First Tier Tribunal agreed with Boehringer, but HMRC has appealed; the Upper Tribunal decision is imminent.
- If the ruling stands, businesses may be able to reclaim overpaid VAT, adjust historic VAT positions, and improve cash flow, but can only go back four years.
- Companies are advised to submit protective claims now to preserve their right to recover VAT, pending the tribunal outcome.
Source: cooperparry.com
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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