The European Commission has welcomed the adoption of measures enabling member states to relieve EU hospitals, medical practitioners and individuals from VAT when acquiring coronavirus vaccines and testing kits. The rules should provide more efficient access to tools to prevent, detect and treat coronavirus. The rules will apply from the day after their publication in the Official Journal and will remain in place until 31 December 2022, or until an agreement is reached on the Commission’s proposal for new rules on VAT rates.
Currently, member states can apply reduced VAT rates on sales of vaccines but cannot apply a zero rate, while testing kits cannot benefit from reduced rates. Under the amended VAT Directive (via a proposed new article 129a inserted into Directive 2006/112/EC), member states will be able to apply either reduced or zero rates to both vaccines and testing kits if they so choose.
The European Commission has welcomed the adoption of measures enabling member states to relieve EU hospitals, medical practitioners and individuals from VAT when acquiring coronavirus vaccines and testing kits. The rules should provide more efficient access to tools to prevent, detect and treat coronavirus. The rules will apply from the day after their publication in the Official Journal and will remain in place until 31 December 2022, or until an agreement is reached on the Commission’s proposal for new rules on VAT rates.
Currently, member states can apply reduced VAT rates on sales of vaccines but cannot apply a zero rate, while testing kits cannot benefit from reduced rates. Under the amended VAT Directive (via a proposed new article 129a inserted into Directive 2006/112/EC), member states will be able to apply either reduced or zero rates to both vaccines and testing kits if they so choose.
