The European Commission has proposed to exempt from Value Added Tax (VAT) goods and services made available by the European Commission, EU bodies and agencies to Member States and citizens during times of crisis.
It has shown that the VAT charged on some transactions ends up being a cost factor in procurement operations that strains limited budgets. Therefore, this initiative will maximise the efficiency of EU funds used in the public interest to respond to crises, such as natural disasters and public health emergencies.
Goods and services covered under the proposed exemption include:
- diagnostic tests and testing materials, and laboratory equipment;
- personal protective equipment (PPE) like gloves, respirators, masks, gowns, disinfection products and equipment;
- tents, camp beds, clothing and food;
- search and rescue equipment, sandbags, life jackets and inflatable boats;
- antimicrobials and antibiotics, chemical threat antidotes, treatments for radiation injury, antitoxins, iodine tablets;
- blood products or antibodies;
- radiation measuring devices;
- development, production and procurement of necessary products, research and innovation activities, strategic stockpiling of products; pharmaceutical licences, quarantine facilities, clinical trials, disinfection of premises, etc.
Read more about it here: https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1642
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