In its ruling of 14 April 2015, the VI. Senate of the Bundesfinanzhof (BFH) held that expenses for medically prescribed drugs within the meaning of § 2 of the German Medicines Act (Arzneimittelgesetz, AMG) are not subject to the deduction prohibition for dietary food under § 33 Abs. 2 Satz 3 of the German Income Tax Act (Einkommensteuergesetz, EStG). The plaintiff suffers from a chronic metabolic disorder. For this reason, she takes vitamins and other micronutrients on medical prescription. She sought to claim the resulting expenses in her income tax return as medical costs and thus as so-called extraordinary burden under § 33 EStG, but without success. After an unsuccessful objection, the action she brought was dismissed by the Finanzgericht (FG). The court held that expenses for vitamins and other micronutrients constituted dietary food and therefore could not be recognised as an extraordinary burden under § 33 Abs. 2 Satz 3 EStG. On the plaintiff's appeal, the BFH set aside the lower court's decision and remanded the case to the FG. The FG had not established whether the preparations taken by the plaintiff qualified as food supplements within the meaning of § 1 of the German Food Supplements Regulation (Nahrungsergänzungsmittelverordnung) — and thus as foodstuffs — or whether they constituted medicinal products within the meaning of § 2 AMG. These findings must now be made on remand. The deduction prohibition under § 33 Abs. 2 Satz 3 EStG covers only expenses for dietary foodstuffs, not medicinal products within the meaning of § 2 AMG. This applies even if the medication is taken as part of a dietary regimen. Such expenses are instead to be recognised as medical costs under § 33 Abs. 1 EStG, provided that the intake of the medication is attributable to an illness and the medication is evidenced by a medical prescription.
Frequently asked questions
Frequently asked questions
Are medically prescribed drugs deductible as an extraordinary burden when taken as part of a diet?
Yes. Expenses for medically prescribed drugs within the meaning of § 2 AMG are deductible as medical costs under § 33 Abs. 1 EStG, even if they are taken as part of a diet. The deduction ban for dietary food under § 33 Abs. 2 Satz 3 EStG only covers dietary foodstuffs, not medicinal products.
What requirements must be met for medication costs to be deductible as extraordinary expenses?
The medication must be taken for medical reasons and substantiated by a doctor's prescription. Only then can the costs be recognized as medical expenses under § 33 Abs. 1 EStG.
What is the tax difference between food supplements and medicinal products?
Food supplements within the meaning of § 1 NemV are classified as foodstuffs and fall under the deduction ban for dietary nutrition. Medicinal products within the meaning of § 2 AMG, by contrast, can be claimed for tax purposes as illness-related expenses. The classification of the product is therefore decisive for its tax treatment.
What did the BFH decide in its ruling of 14 April 2015 regarding vitamins and micronutrients?
The BFH (Az. VI R) clarified that expenses for medically prescribed vitamins and micronutrients do not automatically fall under the deduction ban for dietary products. The fiscal court must examine whether the preparations qualify as medicinal products or as dietary supplements. Only dietary foods are excluded from deduction.
Does the deduction prohibition for dietary food also apply to chronic metabolic diseases?
For pure dietary foods, the deduction prohibition under § 33 Abs. 2 Satz 3 EStG applies regardless of the underlying illness. However, medically prescribed pharmaceuticals used to treat the chronic condition are excluded from this prohibition and remain deductible as extraordinary expenses (außergewöhnliche Belastungen).