Source Minister of FInance
Unoffical translation in English
No VAT on donations of medical supplies to hospitals
Companies that donate supplies of medical supplies to hospitals and healthcare institutions are not liable for VAT. That has been decided by Deputy Prime Minister and Minister of Finance Alexander De Croo. The production and donation of medical supplies can also be charged as professional expenses. Minister Philippe De Backer, who heads the task force for medical relief goods, is satisfied with the decision.
Alexander De Croo, Finance Minister: “It is currently all hands on deck in our hospitals to fight the corona virus and save as many lives as possible. At the same time we see an incredible solidarity. Businesses either donate available supplies of medical supplies to hospitals or plunge into production to make up for shortages. Consider, for example, distilleries that have suddenly switched to the production of rubbing alcohol. With this decision, they don’t have to worry about extra costs. ”
Specifically: a donation of medical supplies to hospitals and healthcare institutions will not give rise to the claimability of VAT. In normal circumstances, VAT can only be deducted on sale of goods, not on donation. Even if one temporarily incurs additional costs for, for example, the production of medical supplies, it will still be possible to enter these as professional expenses.
Philippe De Backer: “ I am very satisfied with this decision. Solidarity is one of the key principles in our fight against the corona virus. Thanks to this measure, this solidarity will not be financially punished afterwards. ”
Finally, Minister De Croo points out that it will also continue to be possible to make donations in cash to hospitals and care institutions through existing channels. Gifts from 40 euros (cumulative per calendar year) entitle you to a tax reduction.
