Europa By introducing and maintaining in force legislation on Value Added Tax under which medicinal products reimbursable under the social security system are taxed at the reduced rate of 2.1% whereas other medicinal products are taxed at the reduced rate of 5.5%, a Member State has not failed to fulfil its obligations under Article 12 of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes.
The rate of value added tax of 2.1%, which is below the minimum rate of 5% laid down in Article 12(3)(a) of the Sixth Directive, is justified under Article 28(2)(a) of that directive in so far as that rate existed on 1 January 1991, is in accordance with Community law, in so far as it is consistent with the principle of fiscal neutrality inherent in the common system of value added tax, given that reimbursable and non-reimbursable medicinal products are not similar products in competition with each other, and meets the criteria set out in the final indent of Article 17 of the Second Directive inasmuch as the application of the reduced rate to reimbursable medicinal products clearly constitutes a social reason, as it necessarily reduces the charges borne by the social security system and also benefits final consumers, whose health expenses are thereby reduced.
[2001] EUECJ C-481/98, [2001] ECR I-3369
Bailii
European
Cited by:
Cited – Marks and Spencer Plc v Customs and Excise HL 28-Jul-2005
The claimant had sought repayment of overpaid VAT, and the respondent resisted arguing that this would be an unjust enrichment. A reference to the European Court was sought.
Held: It was not possible to say that the House’s opinion was acte . .
Lists of cited by and citing cases may be incomplete.
Updated: 25 August 2021; Ref: scu.162738