The EU has extended the remission of VAT on imports of medical devices

The European Commission confirmed on Tuesday that it had decided to extend the temporary remission of customs duties and value added tax (VAT) on imports of medical devices and protective equipment used to fight the COVID-19 pandemic from outside the EU. The decision taken by the European Commission on Monday extends the VAT remission and relief regime operating under the existing derogation, which was due to expire at the end of this month, until 31 December 2021. The extension of tariff and tax relief takes into account the challenges still facing EU Member States in the fight against the new coronavirus pandemic, as well as the fact that imports of these goods remain remarkable. The European Commission's action will continue to financially support Member States in obtaining medical equipment, such as protective masks or ventilators, for healthcare professionals and patients who need them most. The Monday decision followed last week's proposal by the European Commission to exempt from VAT goods and services provided by the European Commission, EU institutions and agencies to Member States and citizens in times of crisis, as well as public health emergencies. In December 2020, the EU Council also agreed on new measures, based on a proposal from the European Commission, to allow the temporary application of a zero VAT rate to COVID-19 vaccines and a reduced or zero VAT rate to COVID-19 test kits sold in EU countries if Member States shall decide.