European Commission adopts proposed tax exemption for supplies to armed forces
Released 25 April 2019
The European Commission has adopted a proposal to exempt from Value Added Tax (VAT) and excise duties certain supplies to armed forces.
The proposed measures are to facilitate common defence efforts in the context of the EU’s Common Security and Defence Policy (CSDP). Under the proposed measures, supplies to armed forces will be exempt 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 can already benefit from such exemptions.