Association of Clinical Trials Organizations (ACTO) - The answer of the Federal Customs Service

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Federal Customs Service of the Russian Federation

February 28, 2008 N 05-17/7531
to N 5-ê of February 12, 2008

To the Executive Director of
the Association of Clinical
Trials Organizations
Zavidova S.
4, Malaya Dmitrovka Str., App. 5,
127006, Moscow, Russia

The Department of Federal Tax Incomes and Tax Regulation of the Federal Customs Service has examined on behalf of the Government of the Russian Federation the appeal of ACTO regarding application of VAT rate 10% to medicines for clinical trials and has to inform you:

January 1, 2008 the Federal law 85-FZ of May 17, 2007 «On introducing amendments to chapters 21, 26.1, 26.2 è 26.3 of Part Second of the Tax Code of the Russian Federation» came into effect.

According to the amendments introduced by the Federal law 85-FZ to the second paragraph of the fourth subparagraph of the article 164 of the Tax Code, VAT rate 10% shall be applied to all medicines including medicines for clinical trials.

The code list of goods for those VAT rate 10% shall be applied is to be approved by the Government of the Russian Federation.

Until the resolution of the Government is published, the decision on the possibility to apply VAT rate 10% to medicines for clinical trials may be made by customs based on the permission on the import of the lot of medicines issued by the Federal Service on Surveillance in Healthcare and Social Development in accordance with the resolution of the Government of Russian Federation ¹438 of July 16, 2005 «On import and export of medicinal products for medical use».

First deputy
of the Department of Federal
Tax Incomes and Tax Regulation

Komarova O.