Vat / Pharmaceutical Products

(Tax News Reporter - Week Ended 18 June 1996)

A wide range of domestically produced and imported pharmaceutical products are currently exempt from Value Added Tax. In order to qualify for the exemption in future, the pharmaceutical product must be explicitly mentioned in an official list or be separately approved by a relevant authority. The exemption from profits tax on sale of pharmaceuticals granted earlier (see Government Regulation of 15 April 1996 No. 478) applies exclusively to domestically produced pharmaceuticals.

Letter of the Ministry of Finance No. 04-04-07 and State Tax Service VZ-4-03/31n of 10 April 1996

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