MOSCOW (Pakistan Point News / Sputnik - 12th April, 2021) The European Commission on Monday proposed that vital goods and services distributed by EU bodies during times of crisis be made exempt from the Value Added Tax (VAT).
"The new measures will 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 an emergency response in the EU," the bloc said in a press release.
This policy would lower the cost of responding to the COVID-19 pandemic by allowing the importation of testing materials, laboratory equipment, and personal protective equipment such as masks and gloves. However, it would likewise allow for VAT exemptions for goods like radiation detection and treatment devices.
"The Coronavirus pandemic has thrown into sharp light the importance of coherent, decisive and centralised EU-level preparation and response in times of crisis ... [T]he Commission has proposed to strengthen cooperation between EU Member States ... with the aim of improving responses to future natural or man-made disasters," the press release read.
This is not the first time that the European Union has used VAT exemption to fight the pandemic. Back in April 2020, the EU made masks and other PPE exempt from VAT and customs fees during importation in order to meet the demand at a lower cost.
Following this suggestion from the European Commission �the executive branch of the EU in charge of proposing and implementing policies � the measure will be passed along to the European Parliament for consideration and then to the European Council for formal adoption.
