EU Extends VAT Exemption to Supplies for Military Projects

The European Parliament approved legislation to exempt value-added tax on supplies used for military operations sanctioned under the European Union’s Common Security and Defense Policy.

EU lawmakers approved the legislation 528 to 78, with 61 members abstaining. The new rules would exempt supplies to armed forces from VAT and excise duties when the military troops are deployed beyond national borders.

• The legislation, effective 2022, provides the same VAT and excise duty exemption allowed to North Atlantic Treaty Organization military operations.
• EU finance ministers approved the legislation Nov. 8 after the Netherlands dropped its demand ...