VAT exemption for supplies to EU agencies in connection with COVID-19 response

LN 359 of 2021 has amended the Fifth Schedule Part 1, adding to the list of zero-rated supplies (exemption with credit) the supply of goods or services to the European Commission or to an agency or a body established under European Union law where the goods or services are purchased in the execution of the tasks conferred by European Union law in order to respond to the COVID-19 pandemic.

The importation of such goods is also exempt pursuant to the new item 9 of Part 4 to the Fifth Schedule.

The changes enter into effect retrospectively, as of 1 January 2021.