May 11
Trajan Shipley
12th April 2021
Covid-19 Tax

Commission proposes amendment to VAT Directive to exempt vital goods and services distributed by the EU in times of crisis

The European Commission has published a proposal seeking to amend the VAT Directive in order to exempt imports of vital goods and services that are distributed by the EU in times of crisis. This would allow the Commission and other EU bodies to import and purchase goods and services VAT-free where such purchases are intended to be distributed among Member States following an emergency response.

The proposal responds to the situation faced by the Commission during the early outbreak of the COVID-19 pandemic, where the EU struggled to secure key medical supplies such as personal protective equipment, masks, ventilators and other critical goods and services. Such goods are covered by the exemption proposed by the Commission, along wi


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