VAT News

European Commission Announce VAT Exemption for Supplies to Armed Forces

In order to facilitate common defence efforts and to align with the EU's Common Security & Defence Policy (CSDP), the European Commission has accepted a proposal to exempt certain supplies to the armed forces from Value Added Tax (VAT) and other excise duties.

Under the agreed new measures, supplies to armed forces will be exempt from VAT when these forces are deployed outside their own Member State and are taking part in a European defence effort of some kind. This aligns with NATO's defence efforts, where supplies towards their efforts are already exempt from such tax systems.

Under the new rules, armed forces deployed outside their own Member State would not pay VAT or excise duty to other Member States when they take part in a NATO defence effort or in a defence activity under the CSDP. By aligning the indirect tax treatment of both defence efforts, the initiative acknowledges the growing importance of the CSDP which require supplies such as training materials, accommodation, provision of food and fuel - all in principle currently subject to VAT.

Related articles

France Cracks down on VAT Fraud on e-commerce 

In a bid to further their clamp down on digital tax and VAT fraud, the French VAT authorities have released further details about the obligation for online e-commerce businesses to provide extensive details about all French sales.

Read more
South Africa: Digital Services VAT and Who Needs to Register for it

South Africa is broadening its definition of what constitutes a digital service forcing VAT registrations in the country.

Read more
Making Tax Digital: Are you Ready for Phase 2?

When Phase 2 of Making Tax Digital is rolled out in April of 2020, over one million businesses of all sizes will be affected by major factors that were not prevalent in phase 1.

Read more