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Meet the Law | New VAT measures

Law n. 13/2020 published today foresees the following VAT measures, applicable with temporary effects:

A.    VAT reduced rate

The application of the reduced VAT rate on imports, supplies and intra-EU acquisitions of protection masks and sanitizer gel that take place from tomorrow through 31.12.2020.

B.    VAT exemption

A VAT exemption, with credit, applicable to the supplies and intra-EU acquisitions of listed goods in need for the COVID-19 treatment (ventilators, masks, other medical equipment, gloves, medical outfits, hand sanitizers, alcoholic solutions, certain drugs used on the COVID treatment, materials for field hospitals, etc.) which are:

  • Acquired by the State and /or other entities directly involved with the  COVID-19, namely public hospitals, and certain private hospitals and non-profit organisms (identified by the Government); and
  • Intended for the treatment or prevention of the COVID-19 (but where the property of such goods remains with the hospitals or similar entities) or for free distribution by these entities to COVID-19 patients or COVID-19 workers (notably, healthcare workers); and
  • Comply with articles 52, 55, 56 and 57 of Directive 2009/132/CE regarding the importation of goods for the benefit of disaster victims.  

This VAT exemption is applicable to the supplies and intra-EU acquisitions of goods that occur between 30.01.2020 and 31.07.2020. Input VAT of goods or services acquired, imported or used for the purposes of these VAT exempt transactions is fully deductible.


Patrick Dewerbe
Raquel Montes Fernandes