- The Federal Fiscal Court (BFH) confirmed that manufacturer discounts on medicinal products must be split into a remuneration portion and a VAT portion when determining the VAT assessment basis.
- The court rejected the plaintiff’s appeal, stating that the legal issues were already clarified by existing case law and EU law.
- The CJEU has ruled that the tax base for VAT is the consideration actually received, and discounts reduce this consideration.
- Discounts given after the transaction are considered price reductions and must be deducted from the tax base, including the VAT portion.
- The BFH decision aligns with previous judgments and EU directives, confirming that discounts reduce the VAT tax base accordingly.
Source: hub.kpmg.de
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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