New VAT exemptions for medical domain

From 11 June 2023, the following types of transaction are exempt from VAT with deduction right:

• construction, rehabilitation, and modernisation services for hospital units in the public state network or those owned and operated by non-profit entities registered with the public register run by the ANAF;

• supplies of medical equipment, appliances, devices, articles, accessories, and protective equipment, sanitary materials and consumables normally intended for use in the field of healthcare or for use by persons with disabilities, and goods essential for coping with and overcoming disabilities other than those mentioned below, as well as the adaptation, repair, rental, and leasing of such goods, made to hospital units in the public state network or those owned and operated by non-profit entities registered with the public register run by the ANAF;

• supplies of dentures and related accessories, with the exception of tax-exempt dentures (servicing and supplies of dentures carried out as part of their profession by dentists and dental technicians);

• delivery of orthopedic products.

VAT exemption will be possible in the following forms:

• directly, by invoicing without VAT, by the suppliers of goods/service providers, if the beneficiary is a hospital unit in the state public network or, where appropriate, the central or local public institution/authority which finances it;

• by refunding VAT on purchases of goods or services made by non-profit entities according to a procedure to be published within 60 days. The refunded amounts are to be used by the non-profit entities exclusively to finance purchases of the goods and/or services mentioned above.

Source: Law no. 88/2023 amending and supplementing Law no. 227/2015 on the Fiscal Code.