Reimbursement of VAT in an ECHO-funded operation

Reminder: reimbursement of VAT (and other taxes, duties and charges) in an ECHO-funded operation.

Normally the Value Added Tax (VAT) and other taxes are not reimbursed by ECHO for the purchase of goods and services by the Humanitarian Organisation (art. 5 of the Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid) within an ECHO funded operation as the general principle applies whereby goods and services purchased for humanitarian purposes are exempt from such taxation. This principle applies to both purchases made in the EU or in an outside country (incl. the country of operation).

In the case of goods and services purchased in EU and subject to VAT and other taxes etc., it is therefore necessary - where possible - to apply for a reimbursement from the Member State where the purchase was made. The partner is responsible for such application.

In case of purchases made outside of the EU, the same principle applies. However, if the partner can prove to ECHO that, nothwithstanding all its efforts for the reimbursement of the VAT or other taxes etc., it has not received a refund from the country, ECHO may decide to refund such amounts.