Commission proposes VAT exemption on army supplies for European defence efforts

Apr 29, 2019

The European Commission recently adopted a proposal to exempt supplies to armed forces from VAT and excise duties when these forces are deployed outside their own Member State and take part in a European defence effort. Supplies to armed forces participating in a NATO defence effort already benefit from such exemptions.

According to the Commission 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 Common Security and Defence Policy (CSDP) under the new proposals.