European Council Implements VAT Exemption for COVID-19 Response Supplies
The European Council introduced a new "buy and donate" directive that imposes a temporary value-added tax exemption on imports of certain supplies in response to the COVID-19 pandemic, according to a July 13 press release. The goal is to make…
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it easier for the European Commission and European Union agencies to purchase goods and services then distribute them for free to member states. "Through this update, purchases of goods and services by an EU body on behalf of member states to respond to the emergency posed by the COVID-19 pandemic are temporarily added to the list of exempted transactions in the VAT directive," the release said. The directive will apply retroactively from Jan. 1, 2021.