Russia. Government supports ARPhP proposal to clarify procedure for applying 10% VAT rate to pharmaceuticals and pharmaceutical substances

At the end of 2012 ARPhP requested the Russian Prime Minister Dmitry Medvedev to bring the Government Resolution No. 688 dated 15.09.2008 "On Adopting the List of Codes for Medical Goods Subject to 10% VAT" into line with the Russian Tax Code and the Federal Law No. 61 dated 12.04.2010 "On Circulation of Pharmaceuticals" (see also KPMG Pharma-Bulletin, Issue #29).

In late February ARPhP received the Ministry’s response that the proposal to exclude a requirement on having a registration certificate for Russian and foreign-manufactured pharmaceutical substances in order to apply a reduced VAT rate was supported by all relevant federal executive authorities.

Regarding the application of a reduced VAT rate to pharmaceuticals during the period when their state registration is being confirmed, according to the Russian Finance Ministry, the introduction of amendments to the law “On the Circulation of Pharmaceuticals” will first be required. The amendments should also stipulate a requirement for submitting an application to confirm pharmaceutical state registration not less than 90 days before the expiration of a registration certificate.

Source: http://goo.gl/46gq4