(Fighting New Coronary Pneumonia) The EU intends to exempt VAT on important goods and services distributed during the epidemic
Following the exemption of value-added tax on anti-epidemic materials such as masks, ventilators, and new crown vaccines, the EU decided on the 12th to further expand the scope of tax incentives and propose to exempt important goods and services distributed by the EU during the epidemic.
According to the announcement issued by the European Commission on the same day, the “important goods and services” that enjoy tax-free concessions include a series of anti-epidemic materials and services, such as raw materials for the diagnosis and testing of new crown pneumonia, personal protective equipment (masks, ventilators, gloves, protective clothing, disinfection Items), isolation and quarantine facilities, clinical trials, disinfection of premises, etc., as well as materials such as antibacterial agents and antibiotics, blood products or antibodies, radiation measuring devices and even search and rescue equipment, tents, sleeping mats, food, clothing and so on.
The announcement stated that once the tax exemption measures are implemented, EU institutions and entities can purchase the above-mentioned goods and services from within and outside the EU without paying VAT, and then distribute them to EU member states or third parties (hospitals, health departments, rescue agencies, etc.), thereby Reduce procurement costs and ease financial pressure on the EU.
The announcement quoted the European Commission’s Economic Affairs Commissioner Gentiloni as saying that the new crown pneumonia epidemic involves all aspects and has a wide-ranging impact on EU society. The EU’s tax exemption is intended to quickly and effectively respond to the epidemic, while ensuring that the EU provides for the fight against the epidemic and economic recovery The financial support of the company is used to its maximum effect.
In accordance with EU procedures, relevant proposals will be sent to the European Parliament for comments after the European Commission’s announcement on the 12th, and then the European Council will vote; if approved, the tax holiday will start from January 1 this year.
Since April last year, the European Union has exempted medical equipment and personal protective equipment from tariffs and value-added tax, in order to reduce the cost of anti-epidemic materials such as masks and ventilators entering the EU market, and to help member states cope with the new crown pneumonia epidemic; in December last year, On the eve of the start of the new crown vaccination,The European Union has also offered new crown vaccines, virus test kits and related services VAT reduction and exemption, the preferential period determined at that time will be until December 31, 2022 or the EU announces a new value-added tax plan.