On 15 February 2022, the European Commission put forward several initiatives to contribute towards European defense and security. Amongst others it has been decided that by early 2023 the Commission will make a proposal which will explore the possibility for a potential VAT waiver to support the joint procurement and joint ownership of defense capabilities that are developed in a collaborative way within the EU. These capabilities will be available for use by Member States for missions and operations in the framework of CSDP20 or within the context of UN, NATO and national activities. Such a measure could especially benefit capabilities developed within cooperative EU frameworks (EDF and/or PESCO and/or within the EDA). The establishment of a legal framework inspired by the European Research Infrastructure Consortium that would benefit from a VAT waiver on equipment that Member States consortia would buy and own, could be considered in this context.

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