ECONOMY - FINANCE - BUSINESS / Taxation

European Commission proposes VAT exemption for supplies to armed forces involved in a European defence effort

Brussels, 24/04/2019 (Agence Europe)

On Wednesday 24 April, the European Commission adopted a proposal to exempt supplies to armed forces from Value Added Tax (VAT) and excise duties when these forces are deployed outside their own Member State and take part in a European defence effort. 

While NATO's defence effort has been covered by the VAT Directive since 1977 and by the Excise Directive since 1993, no exemption applies to supplies and services linked to the common defence effort within the European Union, explained the...