Medicinal products and the possibility of deducting expenses for their purchase

Service-Tax

Polish taxpayers willingly use the right to deduct expenses incurred on drugs, of course, if they have previously acquired the right. On the other hand, there are often situations in which, in addition to drugs, other medicinal products of a medicinal nature are necessary for treatment, and sometimes even there is a situation where the treatment of a very sensitive disease can take place through other types of medical specifics. The question then arises whether in such a situation it is also possible to use the deduction from the income in the annual tax return for the expenses incurred for this type of medicinal products?

Deduction of expenditure on medicinal products as part of the drug allowance

For many years, the taxpayer has been suffering from practical (coexisting) illnesses that occur together or alternately. To the taxpayer in 2016. The Poviat Disability Adjudication Team awarded a slight degree of disability. Unfortunately, the only method of treating these ailments is the use of nursing measures, the necessity of which has been confirmed by a doctor by issuing an appropriate certificate. Medicinal products were purchased on the basis of receipts.

Expenditure on care products that do not meet the characteristics required to be considered drugs may not be deducted from income under rehabilitation relief, although the need to incur such expenditure may be unquestionable.

On the other hand, expenditure on care products that meet the characteristics required to be recognized as drugs may be the basis for deducting them from the taxpayer's income in the annual tax return for the previous year, but in order to do so, the taxpayer is obliged to have a document that will clearly show:

  • the cost of purchasing drugs,

  • date of drug purchase,

  • personal data of the taxpayer as a disabled person who incurs the expenditure for this purpose.

The above position is also reflected in the individual interpretation of 10/02/2017. with reference number 0461-ITPB2.4511.896.2016.2.BK issued by the Director of the Tax Chamber in Bydgoszcz.

Deduction of expenses for substances and dressings

The taxpayer is the mother of a disabled daughter, aged 8, who suffered from a severe thermal burn. The treatment consisted of numerous surgeries and skin transplantation. The taxpayer's daughter was granted a disability certificate and a specialist doctor recommended the use of substances and medicinal products that the taxpayer covers from his own resources and which are not reimbursed in any way. The taxpayer has relevant documents confirming the incurred expenses. The daughter has not achieved any income so far and remains under the constant care of her mother. The substances and medicinal products that the daughter must use are:

  • ointments, creams and gels for scars,

  • specialized silicone and hydrocolloid dressings

  • compression clothing,

  • sterile and non-sterile compresses of various sizes,

  • bandages, plasters,

  • medicated disinfecting liquids,

  • lotions.

In this case, since the taxpayer has shown that he meets the requirements for the deduction of expenses for the purchase of substances and medicinal products, it is still necessary to verify whether all the above-mentioned products are included in the list of medicinal products resulting from the Official List of Medicinal Products Authorized for Marketing in the territory of the Republic of Poland.

Summing up the expenses made by the taxpayer for the purchase of medicinal products and substances for a disabled daughter who is dependent on her, included in the Official List of Medicinal Products admitted to trading in the territory of the Republic of Poland, the use of which has been confirmed by a specialist doctor, the taxpayer has the right to deduct from the income under rehabilitation relief

Expenditure on other dressings and compression garments not listed in the Official List of Medicinal Products will remain without deduction from income.

The above position also takes into account the individual interpretation of March 7, 2016. with reference number IPTPB2 / 4511-802 / 15-2 / Aku issued by the Director of the Tax Chamber in Łódź.

Deduction of rehabilitation allowance in relation to nursing measures

The taxpayer's husband is permanently disabled. Has a certificate of total incapacity for work. In 2017. was treated with an alpha-emitting radiopharmaceutical on the list of medicinal products authorized by the EU Council. This medicine can only be used in specially controlled medical centers and administered to the patient only by people trained and qualified to use them safely. Store the drug in accordance with national regulation on radioactive materials in a lead container. The collection, storage, use, transfer and disposal of waste from medicinal product X are subject to legal regulations resulting from the atomic law. The drug cannot be purchased directly by the patient because its purchase can only be made by specialized medical facilities that buy it directly from the manufacturer and administer it to the patient in a dose calculated on the basis of appropriate recommendations.

The cost of the drug has been documented by an invoice issued by the institution that administered it. Unfortunately, the invoice specifies the entire service, which is called treatment with drug x. The amount of the expenditure described in the invoice includes the price of the drug X, in the conditions required for it. It is not possible to distinguish between the amounts incurred for the drug as a commodity and the drug administration service. Moreover, the taxpayer's husband did not receive any funding for this drug. Despite the treatment, the taxpayer's husband died in 2017. The taxpayer has doubts whether in this situation she can, by jointly settling accounts with her husband, deduct from the income the expenses for the purchase of the drug in this form?

In the Personal Income Tax Act, the legislator clearly indicates that only expenses incurred for the purchase of drugs are deducted under the rehabilitation allowance. A purchase document, from which it is impossible to determine the actual expenditure incurred for the purchase of the drug itself, i.e. without any other costs, does not entitle the taxpayer to exercise the right to deduct the expenditure incurred for the purchase of this drug from the income. In order to be able to use the deduction from income for the purchase of a drug, it is necessary to have an invoice or invoice on which the drug was distinguished, its price, which, unfortunately, is not the case in the above case.

Due to the inability to identify the cost of the drug, the taxpayer will unfortunately not be entitled to deduct the expenditure incurred in full by the husband who died in 2017 for the purchase of the drug x as part of the medical service purchased, to the extent that this possibility is provided by rehabilitation relief.

The above position is also taken into account in the individual interpretation of January 26, 2016. with reference number IPPB4 / 4511-1370 / 15-4 / MS1 issued by the Director of the Tax Chamber in Warsaw.