By April Mulroney, CPA, CA, VP of strategic account management and tax services, CFS Clinical (CFS)
As clinical trials become more global, sponsors and CROs face a myriad of financial, contracting, and compliance challenges. One of the most pressing: understanding and managing the impact of Value Added Tax (VAT).
For trials based solely in the United States, VAT is a nonissue. But when a trial extends into any of the 150 countries that assess VAT, sponsors and CROs must be prepared to navigate the complexities — and manage the costs. This article captures key insights shared by a recent panel of experts from CFS Clinical, EY, and a leading specialty pharmaceutical company.
VAT: The Basics
VAT is a transactional tax (also known as consumption tax or indirect tax) that applies to all transactions — products and services alike. In the clinical trial realm, VAT could therefore apply when a local investigator provides trial-related services.