COVID-19: EU crucial VAT relief for vaccines and testing kits.

Coronavirus response: European Commission welcomes agreement on crucial VAT relief for vaccines and testing kits.

EU member states are not required to apply VAT to Covid-19 vaccines and test kits until January 1, 2023. Member States have approved a temporary adjustment of European value added tax rules to keep vaccines affordable.

EU countries may also, if they wish, apply lower VAT rates for tests and services closely associated with them. A low rate for vaccines is already possible.

Zero and reduced testing rates only apply to Covid-19 vaccines authorized by the Member States or by the European Commission and test kits that comply with EU legislation.

Medical supplies for the fight against the coronavirus have already been exempt from VAT and import duties since the virus emerged in Europe last spring. In October, the committee already proposed that hospitals and healthcare providers do not have to pay VAT for corona vaccines and test kits.

Source europa.eu, VATupdates.com