VATupdate

Covid-19: Extension of the VAT Exemption for medical supplies and subsidies till December 31, 2021

The parliament has extended the VAT exemption for the acquisition and supply of protective and medical equipment

Unofficial translation:

Article 12

(1) Notwithstanding Article 41 of the Value Added Tax Act (Official Gazette of the Republic of Slovenia, No. 13/11 – official consolidated text, 18/11, 78/11, 38/12, 83/12, 86/14, 90/15, 77/18, 59/19 and 72/19, hereinafter: ZDDV-1) from 1 May 2021 to 31 December 2021 are supplies of protective and medical equipment (hereinafter: goods), including acquisitions of these goods within the European Union, from the list of goods determined by the Government of the Republic of Slovenia (hereinafter: the Government) and subject to exemption from import duties and value added tax (hereinafter: VAT), upon import, in connection with Commission Decision (EU) 2020/491 of 3 April 2020 on the exemption from import duties and exemption from VAT on imports of goods necessary to deal with the consequences of the outbreak of COVID-19 in 2020 (OJ 2020 L 103 I) 4. 2020, p.1),as last amended by Commission Decision (EU) 2021/660 of 19 April 2021 amending Decision (EU) 2020/491 on relief from import duties and exemption from VAT on imports of goods necessary to deal with the effects of the outbreak of COVID-19 in 2020 (OJ L 140, 23.4.12021, p. 10), exempt from VAT, with the right to deduct VAT if the following conditions are cumulatively met:
a) the goods are intended for:
– the free distribution to persons affected by, epidemic or contagious of the outbreak by the authorities and organizations referred to in point (b) of this paragraph, or
– free use for persons affected by, dealing with or dealing with the outbreak, provided that the goods remain the property of the authorities and organizations referred to in point (b) of this paragraph;
b) the goods are supplied to a state body or organization, a local authority, another body governed by public law or another organization which is considered a charitable organization, whether the goods are supplied on behalf of those bodies or organizations or the goods are obtained from another EU Member State another person on behalf of these bodies and organizations.
(2) Goods for which the VAT exemption is determined in the second indent a) of the previous paragraph may not be alienated, given for use to another or otherwise used for other purposes, except for the purposes of dealing with the epidemic or performing medical activities, as long as VAT not paid. In this case, VAT is calculated and paid by the entity referred to in the second indent of a) of the previous paragraph at the rate applicable to these goods under ZDDV-1 on the day when the goods are used in this way.
(3) Bodies and organizations referred to in point b) of the first paragraph of this Article who do not use goods with VAT exemption under this Article for the purposes for which the VAT exemption applies pursuant to point a) of the first paragraph of this Article shall be obliged to account for and pay VAT at the rate applicable to these goods under ZDDV-1 on the day when the goods are used in this way and the obligation to account for VAT under ZDDV-1 arises.
(4) If the goods remain the property of organizations that no longer meet the conditions for which they were entitled to VAT exemption, and the goods are transferred free of charge to an organization which is itself entitled to VAT exemption under this Article, the exemption is VAT shall continue to be granted provided that the organization to which the goods have been transferred uses the goods for the purposes referred to in point a) of the first paragraph of this Article.
(5) A taxable person claiming a VAT exemption under this Article must refer to the article of this Act determining the VAT exemption on his invoice and have a statement from the buyer that the goods are intended for use referred to in point a) of the first paragraph of this Article. .
(6) A taxable person claiming a VAT exemption under this Article must submit to the tax authority a report on the supplies of goods referred to in the first paragraph of this Article, containing the following information: VAT identification number, name and address of the taxable person claiming the exemption. VAT payments under this Article, the serial number, tax number or identification number if identified for VAT purposes, the person referred to in point (b) of the first paragraph of this Article who is entitled to the VAT exemption, the Combined Nomenclature tariff code and the value , type and quantity of goods.
(7) The taxable person shall compile the report referred to in the preceding paragraph for a calendar month and submit it to the tax authority in electronic form via the eDavki system no later than the last working day for the previous calendar month.
(8) A taxable person who before the entry into force of this Act charged VAT on supplies of goods or acquisitions of goods within the European Union for goods exempt from VAT in accordance with the first paragraph of this Article may reduce the VAT charged on the invoice issued from previous tax periods for supplies of goods made from 1 May 2021 onwards, shall be included in the VAT return for the tax period in which he corrected such invoice.
(9) The taxable person referred to in the preceding paragraph shall include data on supplies for which he has claimed a reduction in the calculated VAT in the report referred to in the sixth paragraph of this Article.
(10) A taxable person claiming a VAT exemption under this Article must keep records of transactions under this arrangement in such a way as to enable the tax authority to supervise the calculation and payment of VAT.

Source Official Gazette

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