(English version) Question for written answer E-001911/20 to the Commission Marco Dreosto (ID), Massimo Casanova (ID), Rosanna Conte (ID), Danilo Oscar Lancini (ID), Antonio Maria Rinaldi (ID), Stefania Zambelli (ID), Anna Bonfrisco (ID), Andrea Caroppo (ID), Alessandra Basso (ID), Matteo Adinolfi (ID) (27 March 2020) Subject: European commitment to economic recovery in the Member States following the Covid-19 emergency The Covid-19 emergency will shortly and certainly create tensions regarding manufacturing, employment and logistics in every Member State, to the extent that countries are now discussing, nationally, how to deal with future macroeconomic scenarios. In order to avoid problems of social, as well as financial, unrest, and to revive consumption and investment, leading figures and political forces have argued that indirect taxation could be frozen for a certain period of time and that this could be done also by introducing the so-called zero VAT rate. This approach seems to be in line with the recent speech by President von der Leyen on the suspension of the Stability Pact and state aid rules, later summarised by the press with the motto ‘whatever it takes’. In its press release of 13 March, the Commission subsequently explained the President's thinking in more detail and confirmed the concept of ‘suspension’, without, however, openly declaring its non-opposition to a possible national cancellation or reduction of VAT. Will the Commission accept the proposal for individual Member States to reduce VAT to zero or, in any case, reduce it very substantially, or does it regard that as being contrary to the acquis communautaire — first and foremost the VAT Directive (Directive 2006/112/EC) and subsequent amendments? Supporter (1) Answer given by Mr Gentiloni on behalf of the European Commission (9 June 2020) The directive on value added tax (VAT) (2) provides a wide scope for Member States to take action to alleviate the negative impact of the COVID-19 crisis. In this regard, the VAT exemption for hospital and medical care, as well as the possibility of applying reduced VAT rates to pharmaceutical products, is particularly relevant. The Commission has taken unprecedented action to limit the impact of the COVID-19 crisis to peoples’ livelihoods and the economy and has also very rapidly reacted in the area of VAT and customs. It has addressed (3) the requests from Member States and different stakeholders to make the importation of items for disaster victims free of customs duties and VAT. This concerns protective equipment and other relevant medical devices and equipment imported in the context of the COVID-19 outbreak. The Commission prepared an indicative list of exempt goods, but ultimately the Member States will decide on the nature of goods to be exempted, based on their internal needs, and report to the Commission. It is also useful to recall that the Commission’s proposal to reform the system of VAT rates (4) is relevant in addressing the current crisis. If adopted, that proposal would allow Member States to apply a reduced or even zero rate to the supply of goods and services, with the exception of a few goods and services specified in the annex to the proposal. Individual Member States could use that flexibility to set their VAT rates according to their national tax policies. |(⋅1∙|) This question is supported by a Member other than the authors: Elena Lizzi (ID) |(⋅2∙|) Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, OJ L 347, 11.12.2006, p. 1, as amended (the VAT Directive). |(⋅3∙|) e.g. 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, OJ L 103 I, 3.4.2020, p. 1. |(⋅4∙|) COM(2018) 20 final..