Verkhovna Rada of Ukraine registered a Draft Law № 3180 on amendments introduction to subparagraph «B», paragraph 193.1, article 193 of the Tax Code according the facilitation of affordable medicinal products coverage for health institutions and citizens.
The subparagraph «B», paragraph 193.1, article 193 of the Tax Code designates that import and supply operations on the customs territory of Ukraine for medicinal products allowed to be manufactured and used in Ukraine and included into the State Register of medicinal and pharmaceutical products from the list approved by Cabinet of Ministers shall be subject to 7% value added tax.
In the meantime, according to article 9 of the Law «On Medicinal Products» the medicinal products being produced from the allowed active and auxiliary substances by the pharmacies in accordance with doctors’ prescriptions and on orders from medical and preventive treatment facilities are not subject to state registration.
In other words, the conflict of law occurs: in order to be subject to 7% VAT the medicinal products should be included into the State Register.
Therefore, the Draft Law provides for the imposition of 7% VAT on the supply of medicinal products manufactured from the allowed active and auxiliary substances by the pharmacies in accordance with doctors' prescriptions and on orders from medical and preventive treatment facilities.
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