From January 1, 2025, Slovakia will include medicines and medical devices in the reduced VAT rate of 5%. This move is part of a broader tax reform aimed at improving access to essential goods for the population while reducing the financial burden on patients. The changes are likely a response to the European Commission’s assessment of public finances and an effort to reduce the budget deficit.
This change contrasts with developments in the Czech Republic, where, as of January 1, 2024, the VAT rate on medicines increased from the original 10% to 12%, as we mentioned in our previous article Changes in VAT Rate for Pharmaceuticals.
What Impact Will the Reduced VAT Rate Have in Slovakia?
The lower VAT rate is expected to significantly reduce costs for patients in Slovakia for medical devices and medicines, both in outpatient and hospital care. The direct financial impact on individuals will depend on specific measures and pricing policies. For comparison, Slovakia’s VAT on medicines has dropped from 10% to 5%, which could lead to a more noticeable impact on final prices than in the Czech Republic, where the rate was increased.
Impact on External Price Referencing for Medicines
The reduced VAT rate in Slovakia, however, will not affect the external price referencing (EPR) of medicines, used by some countries to set maximum prices and reimbursement levels in their markets. The VAT change does not reflect in EPR because the reference price is almost universally based on the manufacturer’s price.
At the same time, this change offers an opportunity to compare tax policies across the EU, where VAT rates on medicines and medical devices vary significantly. For example, according to data from EFPIA (European Federation of Pharmaceutical Industries and Associations) as of January 1, 2024, Spain applies a 4% VAT rate on medicines, while Denmark has a standard rate of 25%.
Stay tuned to our website for more updates on legislative changes and their impact on healthcare in the EU.
Pharmeca a.s. provides services in the areas defined by this legislative framework:
Act No. 48/1997 Coll., on Public Health Insurance and on Amendments to Some Related Acts, as amended.
Implementing legislations:
Act No. 551/1991 Coll., on the General Health Insurance Company of the Czech Republic, as amended.
Act No. 280/1992 Coll., on departmental, branch, corporate and other insurance companies, as amended.
Act No. 592/1992 Coll., on public health insurance premiums, as amended.
Implementing legislations:
Act No. 526/1990 Coll., on Prices, as amended.
Act No. 378/2007 Coll., on Pharmaceuticals, as amended.
Implementing legislations:
Act No 167/1998 Coll, on addictive substances and amending certain other acts, as amended
Implementing legislations:
Act No. 375/2022 Coll., on medical devices and in vitro diagnostic medical devices, as amended.
Implementing legislations:
Act No 376/2022 Coll. amending certain acts in connection with the adoption of the Act on medical devices and in vitro diagnostic medical devices, as amended.
Act No. 268/2014 Coll., on medical devices and amending Act No. 634/2004 Coll., on administrative fees, as amended.
Act No. 89/2021 Coll., on medical devices and amending Act No. 378/2007 Coll., on pharmaceuticals and on amendments to certain related acts (Act on pharmaceuticals), as amended.
Act No. 22/1997 Coll., on Technical Requirements for Products and amendments to some related acts, as amended.
Act No. 90/2016 Coll., on the assessment of the conformity of specified products when they are placed on the market, as amended.
Act No. 372/2011 Coll., on health services and conditions for their provision (the Health Services Act), as amended.
Decree No. 373/2016 Coll., on the transfer of data to the National Health Information System, as amended.
Act No. 40/1995 Coll., on the regulation of advertising and on amending and supplementing Act No. 468/1991 Coll., on the operation of radio and television broadcasting, as amended.
Act No 242/2022 Coll., on the services of video sharing platforms and amending certain related acts (Act on the services of video sharing platforms), as amended.
Act No. 500/2004 Coll., Administrative Code, as amended.
Current price decisions, opinions and methodological instructions or regulations of the Ministry of Health of the Czech Republic.
Instructions and methodologies of SÚKL.
Pharmeca a.s. provides services in the areas defined by this legislative framework:
Act No. 48/1997 Coll., on Public Health Insurance and on Amendments to Some Related Acts, as amended.
Implementing legislations:
Act No. 551/1991 Coll., on the General Health Insurance Company of the Czech Republic, as amended.
Act No. 280/1992 Coll., on departmental, branch, corporate and other insurance companies, as amended.
Act No. 592/1992 Coll., on public health insurance premiums, as amended.
Act No. 526/1990 Coll., on Prices, as amended.
Act No. 378/2007 Coll., on Pharmaceuticals, as amended.
Implementing legislations:
Act No 167/1998 Coll, on addictive substances and amending certain other acts, as amended
Implementing legislations:
Act No. 268/2014 Coll., on medical devices and amending Act No. 634/2004 Coll., on administrative fees, as amended,
Implementing legislations:
Act No. 22/1997 Coll., on Technical Requirements for Products and amendments to some related acts, as amended.
Act No. 90/2016 Coll., on the assessment of the conformity of specified products when they are placed on the market, as amended.
Act No. 372/2011 Coll., on health services and conditions for their provision (the Health Services Act), as amended.
Decree No. 373/2016 Coll., on the transfer of data to the National Health Information System, as amended.
Act No. 500/2004 Coll., Administrative Code, as amended.
Current price decisions, opinions and methodological instructions or regulations of the Ministry of Health of the Czech Republic.
Instructions and methodologies of SÚKL.
Pharmeca a.s. provides services in the areas defined by this legislative framework:
Act No. 48/1997 Coll., on Public Health Insurance and on Amendments to Some Related Acts, as amended.
Implementing legislations:
Act No. 551/1991 Coll., on the General Health Insurance Company of the Czech Republic, as amended.
Act No. 280/1992 Coll., on departmental, branch, corporate and other insurance companies, as amended.
Act No. 592/1992 Coll., on public health insurance premiums, as amended.
Act No. 526/1990 Coll., on Prices, as amended.
Act No. 378/2007 Coll., on Pharmaceuticals, as amended.
Implementing legislations:
Act No 167/1998 Coll, on addictive substances and amending certain other acts, as amended
Implementing legislations:
Act No. 268/2014 Coll., on medical devices and amending Act No. 634/2004 Coll., on administrative fees, as amended,
Implementing legislations:
Act No. 22/1997 Coll., on Technical Requirements for Products and amendments to some related acts, as amended.
Act No. 90/2016 Coll., on the assessment of the conformity of specified products when they are placed on the market, as amended.
Act No. 372/2011 Coll., on health services and conditions for their provision (the Health Services Act), as amended.
Decree No. 373/2016 Coll., on the transfer of data to the National Health Information System, as amended.
Act No. 500/2004 Coll., Administrative Code, as amended.
Current price decisions, opinions and methodological instructions or regulations of the Ministry of Health of the Czech Republic.
Instructions and methodologies of SÚKL.