COVID-19 – VAT – Exemption and reduced VAT rate applicable to certain goods

In brief

Law no. 13/2020, of 7 May, published in the Official Gazette, establishes the following temporary measures:

• Exemption from VAT on intraCommunity supply and acquisitions of goods (listed in the annex to the referred Law) necessary to tackle the effects of the COVID-19 outbreak; it applies to acquisitions made by the State and other public bodies or non-profit organizations; this measure applies from the 30th January to the 31st July 2020;
• Application of the reduced VAT rate to imports, as well as intraCommunity supplies and acquisitions of masks for respiratory protection and skin disinfectant gel; the reduced rate applies from the 8th May to the 31st December 2020.

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