The European Commission has announced a number of Commission-led initiatives in areas critical for defence and security within the European Union. Among other things, the Commission will explore enabling a possible Value Added Tax (VAT) waiver to support the joint procurement and joint ownership of defence capabilities that are developed in a collaborative way within the EU. These capabilities will be available for use by Member States for missions and operations in the framework of Common Security and Defence Policy (CSDP) or within the context of UN, NATO and national activities. Such a measure could especially benefit capabilities developed within cooperative EU frameworks. The establishment of a legal framework inspired by the European Research Infrastructure Consortium that would benefit from a VAT waiver on equipment that Member States consortia would buy and own, could be considered in this context. A Commission proposal for the VAT waiver is to be made by early 2023.
Source Orbitax
