On Thursday 26 November, by an overwhelming majority (684 votes in favour to 5 against, with 5 abstentions), MEPs gave the green light to an amendment to the VAT directive that temporarily exempts Covid-19 vaccines, test kits and related services from value added tax (VAT) (see EUROPE B12591A1).
The current VAT rules allow a partial reduction in the costs of Covid-19 vaccination and screening, but do not allow a zero rate to be applied to the vaccines or a zero or reduced rate to in vitro...