Covid-19 vaccines will be exempt from VAT in Europe

The governments of the European Union approved a modification of the common rules on VAT so that the sale of vaccines and Covid-19 tests may be exempt from paying this tax until December 31st, 2022.

Until now, Member States could apply a reduced VAT on the sale of vaccines, but not a zero rate. The Covid-19 tests, for their part, could not benefit from even a reduced rate of this tax.

But European partners accepted the legislative proposal that the European Commission put on their table at the end of October as part of a broader strategy to more effectively combat the coronavirus pandemic.

In this way, Member States will now be able to apply a zero or reduced rate of VAT both to vaccines and to test kits to detect Covid-19. It is a modification to the rules of this tax but on a temporary basis, since it will be in force until December 31st, 2022.

In any case, this possibility will only cover vaccines that have been authorized by the European Commission or by an individual Member State and diagnostic tests that meet the standards of community legislation.

K. Tovar

Source: Catalunyaexpress