The Kosovo Tax Administration is deeply concerned about the misinformation spread by the news portal Telegrafi regarding the interpretation of the official response/legal opinion of the Kosovo Tax Administration (TAK) to the Kosovo Chamber of Pharmacists regarding supplier and purchase prices.
In the published news, Telegrafi has disregarded the legal opinion / full response that TAK has issued to the Kosovo Chamber of Pharmacists, where the official response of TAK has addressed the tax aspects of the treatment of the price of medicines, while Telegrafi has presented this opinion as a confirmation from TAK that the price of medicines should be the open market value and not less than the cost price.
Below is the full response of TAK…” The registration of goods must be maintained at cost price, while the supply price must be the open market value but not less than the cost price.
The definition of open market value is made in Article 3, paragraph 1.12 of Law No. 06/L-105 on Corporate Income Tax, quote:
“ 1.12. Open Market Value – the full amount that a customer would have to pay at the same market stage for the supply of goods or services under the conditions of a fair competition, to a supplier under the dominance of the market within Kosovo where the supply is made, in order to obtain the goods or services in question at that time. When comparison to the supply of goods and services cannot be ensured, the open market value shall mean as follows:
1.12.1 in relation to goods, an amount that is not lower than the purchase price of goods or similar goods, or in the absence of a purchase price, the price of costs determined at the time of the supply;
1.12.2. in relation to services, an amount that is not lower than the full costs of the taxable persons that provides such services”.
Discounted sales normally result in a loss to the business, because the discounted price is normally less than the cost value. Such losses are allowable in the year in which they occur, provided that the taxpayer documents the reasons for selling the items at a loss and provides TAK with evidence of the reasons for doing so upon TAK’s request. Any loss incurred is limited to the difference between the purchase price and the price at which the goods were sold, less any insurance reimbursements related to damaged goods or compensation received in respect of goods that have become obsolete. The taxpayer must be able to provide documentation showing the date of purchase and the purchase price of the goods and the date of sale and the reduced selling price of the goods.
The rules of the tax legislation apply only for tax purposes!
Such an incorrect interpretation could cause serious misunderstandings and affect the proper operation of the pharmaceutical sector.
We request that the Telegrafi portal publicly clarify this issue and ensure that the information distributed to the public is accurate and based on data confirmed by competent institutions.
Transparency and accuracy in communication are indispensable to maintain trust and the proper operation of the sector.
