Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 1/25/2013

Poland - VAT on medical equipment, drugs challenged by EC 

January 25:  The European Commission, in a reasoned opinion*, requested Poland to amend its value added tax (VAT) law provisions that allows a reduced VAT rate to be applied with respect to medical equipment and pharmaceutical products, at rates beyond the scope of those allowed under EU law.

Under the EU VAT Directive, EU Member States can apply a reduced VAT rate for medical equipment, aids and other appliances that meet two conditions:


  • They are normally intended to alleviate or treat disability.
  • They are for the exclusive personal use of the disabled.

For pharmaceutical products, the EU VAT Directive allows a reduced rate for those products related to health care, prevention of illness, and medical and veterinary treatments.


According to an EC release, Poland’s VAT measures go beyond the scope of the VAT Directive by allowing a reduced VAT rate to medical equipment of general use and to certain non-medicinal pharmaceutical products (such as disinfectants and spa products).


*A “reasoned opinion” is a formal request made of the EU Member State, requesting that it comply with EU law and inform the EC of measures taken to comply within a specified period—usually two months.




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