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Belgium: VAT implications of pharma research program

Belgium: VAT implications of pharma research program

In Belgium, a new “modulation” of the pharma contributions has been implemented to provide for a subsidy for certain pharmaceutical research. The modulation is funded by the government from funds collected from the industry.


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The Belgian value added tax (VAT) authorities have recognized that pharma contributions paid by pharma companies to a public health insurer may be eligible for a reduction of VAT owed on certain sales of medicines. The right to submit a request for reimbursement of VAT will be considered on a case-by-case basis.

KPMG observation

Pharma companies will need to consider potential VAT refund opportunities under the new “modulation” as well as under a process already in place regarding VAT on pharma contributions.

Read a May 2019 report prepared by the KPMG member firm in Belgium

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