The European Commission has proposed changes to the principal VAT Directive which would exempt from VAT goods and services made available by EU bodies and agencies to member states and citizens during times of crisis. The initiative aims to maximise the efficiency of EU funds used in the public interest to respond to crises, such as natural disasters and public health emergencies.
The new measures would allow the Commission and other EU agencies and bodies to import and purchase goods and services VAT-free when those purchases are being distributed during emergency response in the EU. According to the notes to the proposal for a new amending Directive, various goods and services would be covered under the proposed exemption, including diagnostic tests and laboratory equipment, personal protective equipment (PPE), humanitarian emergency supplies including tents, camp beds, clothing and food, antibiotics and other medication, and quarantine and clinical trial facilities.
If adopted by the Council, EU member states will be required to implement the measures into national law by 30 April 2021, and the provisions will apply with effect from 1 January 2021.
The European Commission has proposed changes to the principal VAT Directive which would exempt from VAT goods and services made available by EU bodies and agencies to member states and citizens during times of crisis. The initiative aims to maximise the efficiency of EU funds used in the public interest to respond to crises, such as natural disasters and public health emergencies.
The new measures would allow the Commission and other EU agencies and bodies to import and purchase goods and services VAT-free when those purchases are being distributed during emergency response in the EU. According to the notes to the proposal for a new amending Directive, various goods and services would be covered under the proposed exemption, including diagnostic tests and laboratory equipment, personal protective equipment (PPE), humanitarian emergency supplies including tents, camp beds, clothing and food, antibiotics and other medication, and quarantine and clinical trial facilities.
If adopted by the Council, EU member states will be required to implement the measures into national law by 30 April 2021, and the provisions will apply with effect from 1 January 2021.
