As part of the fight against Covid-19, Monaco will apply a 0% VAT charge on screening tests and vaccines until the end of 2022. It will also be backdated to mid-October.
The government announced on Wednesday that it would be following France’s lead and removing the VAT (Value Added Tax) charge on PCR and antigen tests, antibody detection tests, as well as all types of vaccines against Covid-19 that will hit the market after validation by the European Medicines Agency.
This measure will apply until 31st December 2022
“Given the current health emergency, an administrative pardon allows the immediate application of this plan, pending publication of the corresponding Sovereign Ordinance,” said the government in a statement. “It therefore concerns all transactions that have taken place from 15^th October 2020.”
It follows a new rule adopted recently by the EU Commission, allowing EU countries to put in place a temporary VAT exemption for vaccines and testing kits being sold to hospitals, doctors and individuals, as well as closely related services.
Previously, member states could apply reduced VAT rates on sales of vaccines but could not apply a zero rate, while testing kits could not benefit from reduced rates. Under the amended Directive, member states are able to apply either reduced or zero rates to both vaccines and testing kits if they so choose.