EU Grants VAT Relief for COVID-19 Vaccines, Test Kits

The European Council adopted amendments to its value-added tax regulations to allow member states to suspend VATs on certain products and services related to treating the novel coronavirus, the council said Dec. 7. The decision will allow member nations to temporarily exempt VATs or apply a “reduced rate” on COVID-19 vaccines, testing kits and “closely related services.” The measures apply only to vaccines authorized by the European Commission or member states and test kits that comply with European Union regulations. EU member states unanimously adopted the new rules, the commission said, which will give members “better and cheaper access” to the products. The amendments will apply until Dec. 31, 2022.