The European Commission proposed on 12 April to exempt from VAT the payment of goods and services which, in times of crisis, are made available to Member States and citizens by the EC, EU bodies and agencies. This approach comes in response to the experience gained during the COVID-19 pandemic. Among other things, it has been shown that the VAT charged for certain transactions becomes, in supply operations, a cost factor that puts pressure on limited budgets. Therefore, this initiative will maximize the effectiveness of EU funds used in the public interest to respond to crises such as natural disasters and health emergencies.
More information, here.
