VAT Changes Affecting the Pharmaceutical Sector

Significant tax changes affecting the pharmaceutical sector came into force on 1 January 2011:

• VAT has been increased until the end of 2013, with the basic rate now 23% the preferential rate 8%, and a new 5% rate having been introduced for items such as basic groceries;
• the qualification of pharmaceutical products for the preferential VAT rate is now determined by the Polish Classification of Goods and Services of 2008 (PKWiU);
• the prices of reimbursed drugs and medical devices may not change in line with the VAT increases, as they are set by the authorities. Any price increases agreed within the supply chain may not exceed the maximum prices set in the ordinance of the Minister of Health and the Minister of Finance;