The European Commission has published a proposal exempting ‘goods and services made available by EU bodies and agencies to Member States and citizens during times of crisis’ from VAT. This means that the European Commission and EU agencies and bodies would be able to import/purchase and distribute VAT-free vital goods and services. These include, for example, testing materials, personal protective equipment, tents, camp beds, clothing and food, search and rescue equipment, sandbags, life jackets and inflatable boats.
NB: This decision would only apply to importation and not intra-Community or domestic supplies. It complements Council Directive (EU) No 2020/2020 of 7 December 2020 amending Directive 2006/112/EC as regards temporary measures in relation to VAT applicable to COVID-19 vaccines and in vitro diagnostic medical devices in response to the COVID-19 pandemic. It is also aligned with the Commission’s proposal published in 2018 amending the VAT Directive as regards VAT rates, which is awaiting a Council’s decision and vote.
Next steps: This proposal will now be discussed in the European Parliament before a potential adoption by the Council.
Find out more at the Commission website.