It’s not a terrible concept to claim a portion of your pharmacy expenses on your tax return to save money and preserve lives in Germany. The most common condition is that pharmacy expenses are tax-deductible, although some exceptions exist. You must keep all receipts if the tax office requests them to verify that you purchased the medication. A doctor or alternative practitioner must prescribe them. It is crucial for the city’s life and economy that the most important pharmacy companies maintain a high quality of service. Expert, efficient, and cost-effective pharmacy tax consultants make sure that everything is taken care of properly and on time. They offer tax advice for pharmacies so you can set up your pharmacy in the most tax-efficient manner. They also assist you in keeping your pharmacy accounts in order as tax specialists. Whether you want to know more about starting a pharmacy, purchasing one, getting ongoing Steuerberatung Apotheken, or passing it down to the next generation, the pharmacy tax experts will give you the finest, most knowledgeable advice.

Is a Pharmacy Bill Without Doctor Prescriptions Tax Deductible? 

Medical notes are required to ensure that prescriptions are taken off your taxes. However, if you have a note from your physician stating that you should buy your prescription-free drugs without a prescription, this, too, is acceptable. You do not have to get a doctor’s note for each purchase of medicine that you take regularly. For instance, headache medicine, nasal spray, cough syrups, and other over-the-counter medicines are commonly tax-deductible. Here is a list of additional medical expenses that may be deducted: prescription drugs, hospital stays, treatments, therapies (like speech, physical, and physiotherapy), acupuncture, osteopathy, dentures and regular teeth cleaning, medical foot care (including orthopedic insoles and shoes), commuting to the doctor, eye care (eyeglasses, contact lenses, and laser eye surgery), hearing aids, walking devices, and prosthetics, among other things. Those who purchase disinfectants and masks to defend themselves against the Corona Virus while commuting to work or being at work can write off these expenses as income-related expenses. Professional activities or occupational diseases can also result in medical expenses that are deducted in the same manner.

What are the Types of Reimbursement for Pharmaceuticals?

A pharmaceutical reimbursement depends on whether it is used in a hospital or ambulatory environment (Inpatient or Outpatient).

Ambulatory Environment (Outpatient)

There are various pharmaceutical reimbursement paths in outpatient care. Competition and market conditions play a crucial role in deciding the best approach for the establishment of a new pharma product in ambulatory outpatient care. Both the regulatory path and market situation must be carefully assessed. Prescription-only drugs are not typically covered by statutory health insurance. There are also a variety of pharmaceuticals that are not covered because they are deemed unnecessary for reaching medical objectives and, therefore, not reimbursed by the Ministry of Health. Herbal remedies and OTC medication are among the drugs included in the negative list. OTCs are reimbursed for children and adolescents up to 18 years old and certain chronic conditions in adults. Patients must pay between 5 and 10 euros for each prescription. Drugs priced 30% below the reference price are not reimbursed if they are excluded from the out-of-pocket payments. Unless the following conditions are met, off-label pharmaceuticals are not reimbursed. There is no authorized product available for this indication; treating a life-threatening disease is the goal, and scientific data suggest that the treatment will be successful with favorable risk/benefit ratios. Once authorized, a pharmaceutical item is immediately qualified for reimbursement from the GKV funds. Manufacturers can initially set the price of a product for 12 months after its market launch, and it must be declared and applied to all sales of the product in Germany. The price is determined via the procedures after the 12-month interval. Prescription-only pharmaceuticals dispensed by pharmacies are sold at retail prices. Because of the addition of fixed margins, each prescription has the same cost: the manufacturer’s price. The patient obtains the drug without paying for it at the pharmacy. The pharmacist is subsequently compensated by the patient’s health insurance fund (GKV fund). Because of mandatory price cuts, the pharmacist receives less than the drug’s entire retail price. However, the pharmacist cannot receive reimbursement from the GKV fund for the entire retail value of the drug since mandatory discounts are deducted from the reimbursement claim. The pharmacist may recoup the manufacturer’s discount for patented drugs and the generic discount for generic equivalents from pharmaceutical manufacturers. The pharmacist must bear the pharmacist’s discount.

Ambulatory Environment (Inpatient) 

The GKV pays for the patient’s entire treatment, regardless of whether the pharmaceutical products used in inpatient care are billed separately to the GKV fund. ‘In the inpatient setting, a flat-rate payment is made for services based on the German Diagnosis-Related Groups (G-DRUGs), which are 1,300 in number. The diagnostic and therapeutic procedures for each case are identified using the ICD-10 German modification and the operation and procedure codes. All the costs associated with the treatment and hospitalization of patients are covered by the DRG case-based flat rate, including pharmaceuticals. The compensation amounts are based on continuous data collected from hundreds of German clinics. Time lags may occur between the introduction of a new procedure code and a proper DRG classification. Inpatient care is provided by DRUGs, which currently do not cover the cost of expensive drugs. The additional charges and NUB procedures are two options for covering these costs. Additional charges and NUB procedures are alternatives for covering the costs of costly medications. Hospitals and medical societies may apply for an additional charge developed by the InEK. On their initiative, the InEK will create an additional charge in most situations. The monetary value of the additional charge is generally based on empirical cost information supplied by reference hospitals. The NUB (New Methods for Treatment and Screening) method remunerates costly procedures in Germany. It is only accessible to technologies/procedures considered new in Germany. The InEK (Institute for Evaluation and Quality in Healthcare) can accept hospital-specific extra-budgetary requests for negotiations on NUBs (New Methods for Treatment and Screening) once a year. The hospital may negotiate with the local healthcare payer if the request is approved. Each hospital must apply separately. If the application is accepted, the NUB (New Methods for Treatment and Screening) payment will only be available to the hospital that negotiated successfully.


Pharmacists require honesty and openness from their tax advisers. You can rely on an expert advisor in tax law for pharmacists to answer any questions you have or keep you updated on future changes. Weihandl built up an outstanding client list through many years of excellent service, and they are proud to provide tax advisory services for pharmacies in Germany and other federal states. They would be delighted to meet with you personally if you’d like to learn more about their expertise as a tax consultant for pharmacies.

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