EU Waiving Import Duties, VATs on Non-EU Medical Equipment for Six Months

The European Union will officially waive customs duties and value-added taxes on medical equipment imports from non-EU countries, the European Commission said April 3. The measure, signaled in a March 30 customs guidance (see 2003310030), was approved by the commission to help combat the COVID-19 pandemic after requests from member states. Import duties and VATs will be lifted for six months for masks, protective equipment, testing kits, ventilators and other medical equipment, the commission said, adding that the measure will take effect retroactively from Jan. 30. The EU may consider an extension after six months.

“We need a lot of this equipment, and it can be expensive,” European Commission President Ursula von der Leyen said in a statement. She added that the average VAT rate for ventilators is 20%, which could be making it more difficult for hospitals to pay for imports. “In Italy, a customs duty of 12% and value-added tax of 22% is levied on some face masks or protective garments that we import from countries like China. Our decision will make them one-third cheaper,” she said. “This is our contribution to easing the pressure on prices for medical and protective equipment.”