The revised Therapeutic Products Act (HMG) came into force on 1 January 2019. This requires an amendment to Art. 49 of the Value Added Tax Ordinance (VAT Ordinance), which is expected to take effect on 1 April 2019.
According to a press release issued by the FTA on 4 January 2019, the revised Therapeutic Products Act (HMG) came into force on 1 January 2019. In the period between 31 December 2018 and the entry into force of the new prescription provision, temporarily authorised or temporarily licensed drugs will be considered as reduced taxed drugs in the same way as before and afterwards.
In addition, the new category of ready-to-use medicinal products not subject to authorisation, as inserted in Article 9(2ter) of the German Medicines Law, will be treated in the same way as it will be for the period after the entry into force of the new prescription provision (taxation at a reduced rate).
