The European Commission gave its green light on Friday 3 April to requests from Member States and the United Kingdom for temporary exemption from customs duties and VAT on medical devices and protective equipment imported from non-Member States and considered essential in the fight against the Covid-19 pandemic.
With this decision, the Commission explains that it intends to respond to the soaring prices of such equipment and to make these basic necessities more accessible to healthcare workers fighting the pandemic. "This is our contribution to easing the pressure on prices for medical and protective equipment. And to making them more affordable", said the institution's president, Ursula von der Leyen, in a video.
This initiative supplements a Commission Regulation of which it is the exact counterpart and which makes all exports of personal protective equipment subject to authorisation (see EUROPE 12451/7, 12447/7).
Taking the example of Italy, the European country hardest hit by the crisis, where customs duties of 12% and value added tax of 22% are levied on certain facemasks and protective garments imported from countries such as China, Ms von der Leyen estimated that this decision will reduce the price of such equipment by a third.
The possibility of granting relief from customs duties or VAT on imported goods in the event of a "disaster" is provided for in EU legislation, on the basis of a Commission decision and at the request of the Member State concerned. The Commission therefore invited all Member States - but also the United Kingdom, which remains bound by European legislation until the end of the year - to submit a request to this effect, which they all did between 19 and 26 March.
The decision applies retroactively for imports from 30 January 2020 until 31 July 2020 and may be extended if necessary, the Commission specifies.
It covers masks, protective equipment, testing kits, respirators and other medical equipment that are distributed or made available free of charge to people affected by Covid-19, at risk of contamination or involved in the fight against the pandemic. It applies to both state agencies, including hospitals, and registered charities.
"The suspension of VAT and tariffs on imports is a welcome step and in line with measures that we’ve seen elsewhere around the world to cope with these unprecedented circumstances", said Jason Piper, ACCA's Head of Taxation, who represents public accountants.
"We hope that national governments will take advantage of the eased requirements, and assist importers with the implementation of the new rates, especially in respect of any retrospective application", he continued.
See the decision: https://bit.ly/2UE6tEf (Original version in French by Marion Fontana and Hermine Donceel)