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A company requested clarification on whether its pharmaceutical products and diagnostic reagents could qualify for the 0% VAT rate. The Directorate-General for Taxes (DGT) ruled that this rate is exclusively applicable to SARS-CoV-2 in vitro diagnostic medical devices that comply with Directive 98/79/EC or Regulation (EU) 2017/746.
Companies manufacturing or distributing diagnostic reagents must ensure strict compliance with specific EU directives and regulations to benefit from the 0% VAT rate; otherwise, standard VAT rates will apply.
The tax team reviews your specific situation.
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