New VAT Exemptions in the Medical Field
New VAT Exemptions in the Medical Field
| In the Official Monitor of Romania, Part I, no. 310/12.04.2023, was published the Law no. 88/2023 amending Fiscal Code. |
| This law provides for new VAT exemptions in the medical field. |
| This law will enter into force on 11th June 2023. |
| These supplies will be VAT exempt with the deduction right: |
| the construction, rehabilitation, modernization services of hospital units from the public state network, as well as the construction, rehabilitation, modernization services of hospital units provided to non-profit entities, if they are intended for hospital units owned and operated by the non-profit entity or those in the network state public, as the case may be; |
| supplies of medical equipment, apparatus, devices, articles, accessories and protective equipment, materials and consumables for sanitary use, normally intended for use in the field of health care or for use by disabled persons, essential goods for compensating and overcoming disabilities, as well as the adaptation, repair, rental and leasing of such goods, carried out to hospital units from the state public network, as well as those carried out to non-profit entities, if they are intended for hospital units owned and operated by the non-profit entity or those from the public network of the state, as the case may be. |
| Non-profit entities are those registered in the Public Register organized by National Agency for Public Administration. |
| The VAT exemption for the above supplies of goods/services applies as follows: |
| directly, through invoicing without VAT by the suppliers of goods/service providers if the beneficiary of the delivery/service is the hospital unit from the public state network or, as the case may be, the central or local public institution/authority, which ensures its financing, according to the law; |
| by returning the VAT related to the purchases of goods or services made by non-profit entities, according to a procedure established by order of the Minister of Public Finance. |
| The following supplies of goods will also be VAT exempt with the deduction right (to which the reduced VAT rate of 9% was previously applied): |
| delivery of prostheses and their accessories (except for dental prostheses delivered by dentists and dental technicians that are already VAT exempt but without deduction right); |
| delivery of orthopaedic products. |