VAT exemption for services closely linked to COVID-19 vaccines

The Fifth Schedule Part 1 of the VAT Act has been amended (LN 4 of 2021) to extend the exemption with credit (zero-rate) to “services closely linked to COVID-19 vaccines falling under sub-heading 3002.20 of the Customs Tariff contained in the First Schedule to the Import Duties Act” until 31 December 2022.

This amendment brings into force the provisions of Directive 2020/2020 amending Directive2006/112/EC as regards temporary measures in relation to value added tax applicable to COVID-19 vaccines and in vitro diagnostic medical devices in response to the COVID-19 pandemic.