Date: 2020-04-03Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Decision (EU) 2020/491 of 3 April 2020 on relief from import duties and VAT exemption on importation granted for goods needed to combat the effects of the COVID-19 outbreak during 2020 (notified under document C(2020) 2146)
Issued by European Commission
· Directorate-General for Taxation and Customs Union
Executive Summary:
This Commission Decision (EU) 2020/491, issued on April 3, 2020, provides relief from import duties and VAT exemption on goods imported to combat the effects of the COVID-19 outbreak during 2020. It applies to importations made from January 30, 2020, to July 31, 2020. Member States must communicate specific information to the Commission by November 30, 2020.
Key Points / Main Content:
Import Duty and VAT Relief:
* Goods intended for free distribution or use in combating COVID-19 are eligible for import duty relief and VAT exemption.
* This applies to goods distributed by state organizations, public bodies, or approved organizations.
* Disaster relief agencies importing goods to meet their needs while providing disaster relief related to COVID-19 are also eligible.
Conditions for Relief:
* Goods must meet specific requirements outlined in Regulation EC No 1186/2009 and Directive 2009/132/EC.
* Eligible goods must be for free distribution to those affected by or at risk from COVID-19 or involved in combating the outbreak.
* Goods can also be made available free of charge while remaining the property of approved bodies/organizations.
Reporting Requirements for Member States:
* Member States must provide a list of approved organizations to the Commission.
* They must report the nature and quantities of goods admitted free of import duties and VAT.
* Member States must detail measures taken to ensure compliance with relevant regulations and directives.
Timeframe:
* The decision applies to importations from January 30, 2020, to July 31, 2020.
* Member States must submit required information to the Commission by November 30, 2020.
Impact Analysis:
Member States:
Impact: Member states benefit from the import duty relief and VAT exemption when importing goods to combat COVID-19. They also bear the responsibility of approving organizations and reporting required information.
Action Required: Member states must approve eligible organizations, track the nature and quantities of imported goods that received the tax relief, ensure compliance with relevant regulations, and report required information to the Commission by November 30, 2020.
Commission:
Impact: The Commission is responsible for overseeing the implementation of this decision and reviewing its effectiveness.
Action Required: The Commission will receive and analyze the information provided by Member States, and review the situation before the end of the relief period to determine if an extension is necessary.
Organizations involved in COVID-19 Relief Efforts:
Impact: These organizations, if approved by Member States, can import goods duty-free and VAT-exempt for distribution or use in combating the COVID-19 outbreak.
Action Required: Organizations must seek approval from their Member State's competent authorities to be eligible for the import duty relief and VAT exemption. They must also adhere to the conditions outlined in the decision regarding the use and distribution of the imported goods.
Key Entities Referenced
COVID19: The disease caused by the SARS-CoV-2 virus, which was declared a pandemic by the World Health Organization (WHO) in March 2020.
European Commission: The executive branch of the European Union, responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations.
World Health Organisation (WHO): A specialized agency of the United Nations responsible for international public health.
Council Directive 2009/132/EC: A European Union directive determining the scope of Article 143b and c of Directive 2006/112/EC as regards exemption from value added tax on the final importation of certain goods.
Council Regulation (EC) No 1186/2009: A European Union regulation setting up a Community system of reliefs from customs duty.
Italy: A Member State of the European Union that requested relief from import duties and VAT on imported goods due to the COVID-19 outbreak.
France: A Member State of the European Union that requested relief from import duties and VAT on imported goods due to the COVID-19 outbreak.
Paolo Gentiloni: Member of the European Commission.
3.4.2020 E N O f f i c i a l J o u r n a l o f t h e E u r o p e a n Union L 103 I/1
II
(Non-legislative acts)
DECISIONS
COMMISSION DECISION (EU) 2020/491
of 3 April 2020
on relief from import duties and VAT exemption on importation granted for goods needed to combat
the effects of the COVID-19 outbreak during 2020
(notified under document C(2020) 2146)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Council Directive 2009/132/EC of 19 October 2009 determining the scope of Article 143(b) and (c) of
Directive 2006/112/EC as regards exemption from value added tax on the final importation of certain goods(1), and in
particular the first paragraph of Article 53 thereof, in conjunction with Article 131 of the Agreement on the withdrawal
of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy
Community,
Having regard to Council Regulation (EC) No 1186/2009 of 16 November 2009 setting up a Community system of reliefs
from customs duty(2), and in particular the first paragraph of Article 76 thereof, in conjunction with Article 131 of the
Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and
the European Atomic Energy Community,
Whereas:
(1) On 30 January 2020, the World Health Organisation (WHO) declared the COVID-19 outbreak a public health
emergency of international concern. On 11 March 2020 WHO declared the COVID-19 outbreak a pandemic.
COVID-19 has now provoked infections in all Member States. As the number of cases is increasing alarmingly and
due to the lack of means to deal with the COVID-19 outbreak, numerous Member States have declared a national
state of emergency.
(2) In order to combat the effects of the COVID-19 outbreak, requests were made by Italy on 19 March 2020, France on
21 March 2020, Germany and Spain on 23 March 2020, Austria, Cyprus, Czechia, Estonia, Greece, Croatia,
Lithuania, the Netherlands, Poland, Portugal and Slovenia on 24 March 2020, Belgium, Bulgaria, Denmark, Finland,
Hungary, Ireland, Luxembourg, Latvia, Romania, Slovakia and the United Kingdom on 25 March 2020 and Sweden
and Malta on 26 March 2020 for relief from import duties and exemption from value added tax (‘VAT’) on
imported goods.
(3) The COVID-19 pandemic and the extreme challenges it poses constitute a disaster within the meaning of Section C
of Chapter XVII of Regulation (EC) No 1186/2009 and Chapter 4 of Title VIII of Directive 2009/132/EC. It is
therefore appropriate to grant a relief for import duties chargeable on goods imported for the purposes described in
Article 74 of Regulation (EC) No 1186/2009 and an exemption for value added tax (VAT) chargeable on goods
imported for the purposes described in Article 51 of Directive 2009/132/EC.
(4) The Member States should inform the Commission of the nature and quantities of the various goods admitted free of
import duties and VAT with a view to combatting the effects of the COVID-19 outbreak, of the organisations they
have approved for the distribution or making available of those goods and of the measures taken to prevent the
goods from being used for purposes other than to combat the effects of this outbreak.
(1) OJ L 292, 10.11.2009, p. 5
(2) OJ L 324, 10.12.2009, p. 23.L 103 I/2 E N O f f i c i a l J o u r n a l o f t h e E u r o p e a n Union 3.4.2020
(5) Taking into consideration the extreme challenges that Member States face relief of import duties and exemption of
VAT should be granted in respect of importations made from 30 January 2020. The relief should remain in place
until 31 July 2020. Before the end of this period, the situation will be reviewed and where necessary, in consultation
with the Member States, may be extended.
(6) On 26 March 2020, the Member States were consulted in accordance with Article 76 of Regulation (EC)
No 1186/2009 and Article 53 of Directive 2009/132/EC,
HAS ADOPTED THIS DECISION:
Article 1
1. Goods shall be admitted free of import duties within the meaning of Article 2(1)(a) of Regulation (EC) No 1186/2009
and exempted of value added tax (VAT) on the imports within the meaning of Article 2(1)(a) of Directive 2009/132/EC,
where the following conditions are fulfilled:
(a) the goods are intended for one of the following uses:
(i) distribution free of charge by the bodies and organisations referred to in point (c) to the persons affected by or at
risk from COVID-19 or involved in combating the COVID-19 outbreak;
(ii) being made available free of charge to the persons affected by or at risk from COVID-19 or involved in combating
the COVID-19 outbreak while remaining the property of the bodies and organisations referred to in point (c);
(b) the goods satisfy the requirements laid down in Articles 75, 78, 79 and 80 of Regulation (EC) No 1186/2009 and
Articles 52, 55, 56 and 57 of Directive 2009/132/EC;
(c) the goods are imported for release for free circulation by or on behalf of State organisations including State bodies,
public bodies and other bodies governed by public law or by or on behalf of organisations approved by the competent
authorities in the Member States.
2. Goods shall also be admitted free of import duties within the meaning of Article 2(1)(a) of Regulation (EC)
No 1186/2009 and exempted of VAT on the imports within the meaning of Article 2(1)(a) of Directive 2009/132/EC,
where they are imported for release into free circulation by or on behalf of disaster relief agencies in order to meet their
needs during the period they provide disaster relief to the persons affected by or at risk from COVID-19 or involved in
combatting the COVID-19 outbreak.
Article 2
Member States shall communicate by 30 November 2020 at the latest the following information to the Commission:
(a) a list of organisations approved by the competent authorities in the Member States as referred to in point (c) of Article 1
(1);
(b) information regarding the nature and quantities of the various goods admitted free of import duties and VAT pursuant
to Article 1;
(c) measures taken to ensure compliance with Articles 78, 79 and 80 of Regulation (EC) No 1186/2009 and with
Articles 55, 56 and 57 of Directive 2009/132/EC with regard to the goods falling under the scope of this Decision.3.4.2020 E N O f f i c i a l J o u r n a l o f t h e E u r o p e a n Union L 103 I/3
Article 3
Article 1 shall apply to importations made from 30 January 2020 to 31 July 2020.
Article 4
This Decision is addressed to the Member States.
Done at Brussels, 3 April 2020.
For the Commission
Paolo GENTILONI
Member of the Commission