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Council greenlights temporary VAT relief on COVID-19 vaccines and test kits

The EU is taking steps to ensure affordable access to COVID-19 vaccines and testing kits.

The Council yesterday adopted amendments to the directive on the common system of value added tax (VAT) to allow member states to temporarily exempt COVID-19 vaccines and testing kits, as well as closely related services, from VAT.

Member states may also apply a reduced VAT rate to testing kits and closely related services, if they choose to do so. This possibility is already available for vaccines.

The measures decided yesterday only concern COVID-19 vaccines authorised by the Commission or by the member states and COVID-19 test kits that comply with the applicable EU legislation.

They will apply until 31 December 2022.

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