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

HMRC Opens Investigation into Uber Over £1bn Unpaid VAT

HMRC is looking to whether Uber should be classified as a transportation company, and therefore liable to pay VAT in the UK.

Read more
UAE Averaging 8,000 VAT Refunds Every Day

500 days since it's introduction, VAT refunds in the UAE are soaring.

Read more
UK MP Calls for Scrapping VAT Applied to Sunscreen

UK MP Chris Bryant calls for scrapping the 20% VAT rate applied to sunscreen products, encouraging more people to regularly use it.

Read more