Explanation regarding application of 5% VAT rate

The Commentary clarified, that taxable value of the outer package of the non-compensated prescribed medicines is the taxable value of the package after granting discounts.

It is also noted, that the external package consisting of several outer packages (e.g. package for transport, which includes 100 outer packages) is not considered outer package, therefore in such case reduced 5% VAT rate shall not be applied.

Recent Posts

Termination of Employment Contracts Due to Redundant Job Functions: Key Requirements and Key Aspects - Leinonen
March 10, 2025

Termination of Employment Contracts Due to Redundant Job Functions: Key Requirements and Key Aspects

In business practice, situations often arise where employment relationships end not by mutual agreement but at the employer’s initiative. We frequently receive inquiries from clients…

Continue reading
Expanding your business in the Baltic States: what challenges lie ahead and how to overcome them - Leinonen
February 14, 2025

Expanding your business in the Baltic States: what challenges lie ahead and how to overcome them

When companies look to expand into foreign markets, the Baltic States often become the first choice. Operating in neighboring countries presents numerous opportunities but also…

Continue reading
Key Criteria for Choosing an Accounting Program: Essential Solutions for Effective Financial Management - Leinonen
February 5, 2025

Key Criteria for Choosing an Accounting Program: Essential Solutions for Effective Financial Management

In today’s business environment, financial accounting and operations management are inseparable from the use of digital tools and advanced applications. Whether establishing a new company,…

Continue reading