On 25 June 2025, from 14:30 to 16:15, the FISC Subcommittee will host a joint public hearing with the SEDE Committee on "The European Defence Union: Tax Matters". The hearing will focus on the legislative framework governing VAT exemptions for defence-related activities carried out under the EU’s Common Security and Defence Policy (CSDP).
It will examine the 2015 Council Decision granting VAT exemptions to NATO and EU agencies for defence efforts supporting the implementation of Union activities, and assess how effectively Member States are applying these provisions.
In particular, the discussion will explore the cooperation mechanisms between the European Commission, national Ministries of Finance, and Ministries of Defence in ensuring consistent and compliant implementation of the VAT exemptions. The panel will also address the operational and administrative challenges encountered in the field. The insights gathered will contribute to the broader debate on strengthening the fiscal framework underpinning European defence initiatives, including the European Defence Industry Programme (EDIP) and upcoming measures under the ReArm Europe Plan and Readiness 2030 strategy.
Location : European Parliament - SPAAK (5B001) - Brussels
Programme of the hearingWebstreamingMr Ludwig de Winter, Acting Head of Unit, VAT Policy (TAXUD.C.1), Directorate-General for Taxation and Customs Union, European Commission StatementMs Kaija Schilde, Associate Dean of Studies, Pardee School of Global Studies, Boston University PowerPoint Presentation StatementBackground document provided by the European Parliamentary Research Service (EPRS) Tax challenges facing the European defence unionSource :
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