Fees for drug packaging: VAT rules

Not all fees for drug packaging are subject to VAT. The Federal Agency for Medicines and Health Products (FAMHP) clarifies when VAT is applicable and when it is not.

Fees not subject to VAT

VAT is not applicable to fees intended to finance the FAMHP. The following fees are thus exempt from VAT:

  • The quarterly fees for pharmacies and veterinary depots
  • The annual fee for wholesalers and the wholesale distributors
  • The annual fee for marketing authorization (MA) holders.

Fees that are subject to VAT

Only the quarterly fees for pharmacies and veterinary depots intended to finance the drug research unit (DRU) are subject to VAT.

This fee finances a service (even though it is obligatory) The VAT is applicable to this fee because it is included in the final sales price.

Army and hospital pharmacies are not subject to VAT. They pay the VAT to their suppliers because they cannot charge to their customers.

Retail pharmacies pay the VAT directly to the Federal Public Service Finance. Suppliers thus may not charge VAT to these pharmacies.

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