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

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

The Council has just 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.

Vaccines authorised by the Commission

The measures decided 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.