The EU Commission has adopted a proposal, allowing the EU Member States to apply a zero rate VAT rate on Covid-19 vaccines and testing products. Currently, Member States can apply reduced VAT rates on sales of vaccines, but cannot apply a zero rate, while testing kits cannot benefit from reduced rates. As a consequence, different EU Member States might be adopting such a zero/reduced rate in the next coming months for these products (they are not obliged to).
You may find some additional information on the adopted proposal on the following link: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2299
It will be key to monitor changes to the VAT rates in the different EU Member States as a consequence of this.
Happy to discuss the topic in more detail with you.
Dr. Sandra Ragaz, Partner
Leader Pharma & Life Science VAT Switzerland
Office: +41 58 792 44 69
Mobile: +41 79 792 72 98
Raymond van Sligter, Partner
Office: +41 58 792 1558
Mobile: +41 79 897 7123
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