The introduction of a new tax rate of VAT of 7% may affect the prices of medicines in Ukraine
Last reviewed: 16.10.2021
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In Ukraine, the prices of medicines may increase due to the introduction of a one-time tax of 7%, which the new government decided to establish as an anti-crisis measure. About this need last week, said Oleg Musii.
The Minister of Health promises to take all possible measures to prevent price increases. O. Musiy is sure that it is possible to influence the price policy of producers with the help of a transparent scheme of state procurement of medicines.
Regarding the introduction of a new tax rate, the Ministry of Revenue and Fees explains that a 7% VAT rate is imposed on transactions for the supply of medicines that are allowed for use and production in Ukraine, as well as entered in the State Register of Medicines, including pharmacies. In addition, 7% of the tax will be levied on medical devices, according to the list that the Cabinet approved in 2011 (Decree No. 867 exempted medical products from paying VAT).
The sale of medicinal products can be carried out only if there is a license obtained in accordance with the legislation. The new 7% tax is additional, the main, as before, is the tax rate of 20%. From April 1, 2014, medicines and medical supplies are supplied with a tax rate of 7%. Medicines and medical products that were purchased before April 1 should be sold already using the new tax rate, even though they were purchased under preferential tax treatment. The size of the new tax should be added to the price of the drug or medical product.
Temporarily, before the approval of a new list of medical products or before making appropriate changes to the resolution, which was approved by the Cabinet of Ministers of Ukraine, in order to apply the tax exemption regime, the 7% rate is used for medical supplies that are included in the register , approved on August 8, 2011 ("Issues of exemption of medical supplies from taxation of value added tax").
At the same time, for the application of the 7% tax rate, the requirement that was established by the above-mentioned decision for applying the tax relief for operations for the supply of medical products remains: the tax rate of 7% will be applied for the supply of products for medical use and with the appropriate marking ( mark "*" in the list).
When delivering medicines and medical supplies, which are subject to a 7% tax rate, it is necessary to draw up a separate tax invoice. When compiling such a consignment note, in the field where it is necessary to enter the activity code, the digit 7 is put after the serial number after the fraction.