0% VAT to help victims of the war in the Ukraine
5 March marked the effective date of the Regulation of the Minister of Finance introducing 0% VAT for gratuitous performances made to help those suffering the effects of the war on the territory of the Ukraine (“Regulation”).
The preferential VAT rate can be applied to gratuitous performances, i.e. the supply of goods and provision of services to:
- local government units,
- the Government Agency for Strategic Reserves
- medical entities within the meaning of Article 4(1) of the Act on Medical Activities
To use the reduced VAT rate, it is necessary to conclude a written agreement with an entity to which the gratuitous performances are made, which indicates that the goods supplied or services provided are used to help victims of the war in the territory of the Ukraine.
The preferential VAT rate can also be used with respect to performances made before 5 March, but no earlier than before 24 February 2022. In case of performances made in this period, no agreement is required – it is sufficient for the taxpayer and the beneficiary of the performance to confirm in writing that the performance was made for purposes eligible to 0% VAT.
The reduced VAT rate is to be in force until 30 June 2022, but this period can be extended.
The Ministry of Finance also informed that works are performed over other tax preferences for entities which get engaged in aid needed in connection with the situation in the Ukraine. The preferences are to include, without limitation, deductibility of expenses for purchase or production of things or rights which are donated for purposes connected with counteracting the effects of war in the Ukraine.
KONTAKT
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E: elzbieta.lis@pl.Andersen.com
T: +48 32 731 68 58
M: +48 664 948 038
