EU Officials Call VAT Exemptions Key in Defense Spending Push

Value-added tax exemptions for weapons purchases are critical for the EU’s pursuit of higher defense spending and closer security cooperation, EU officials told a European Parliament tax subcommittee Wednesday.

VAT exemptions for defense suppliers lower the cost for EU member countries buying within Europe and reduce the administrative cost for both countries and companies, Edouard Simon, legal and policy officer at the European Commission, told the subcommittee in Brussels.

“Defense expenditure is already paid for by the taxpayer,” Simon told the panel, known as the FISC Committee. “Taxing them twice, it would be contrary to the spirit of ensuring ...