- The regulation of the Minister of Finance introduces a 0% VAT rate for free supplies of goods or the provision of services for purposes related to helping victims of hostilities in Ukraine.
- The 0% VAT rate applies to all types of services that may be necessary to support the victims in this conflict.
- The preference applies to services offered to entities that constitute an important link in the organization and distribution of assistance for victims.
- The 0% VAT rate applies to services made from February 24 this year, i.e. from the moment when Russia began armed aggression against Ukraine.
In connection with the war in Ukraine, many economic entities are involved in donating goods or offering free services to help the victims of this conflict. It became necessary to introduce extraordinary tax solutions supporting these activities also in the field of VAT.
The regulation on the 0% VAT rate in the case of material aid is a tribute to those citizens of our country who are not indifferent to the needs of people affected by hostilities in Ukraine . It is also a signal on our part that supporting those in need always makes sense. It is a brick that we contribute in these difficult times to show that we appreciate every form of providing help. For now, the zero VAT rate will apply until June 30, 2022. However, we do not exclude the possibility of extending this deadline. We also do not exclude the possibility of extending preferences. Both of these issues depend on the evolution of the situation that we are closely monitoring
– says deputy finance minister Artur Soboń.
0% VAT rate – scope
The regulation introduces a 0% VAT rate for all free supplies of goods and services offered for the purposes of assisting victims of the consequences of hostilities in Ukraine. In this respect, contrary to the actions taken during a pandemic, the material scope of the preferences is open.
Circle of aid beneficiaries
The 0% VAT rate covers services offered to entities, which constitute an important link in organizing assistance and distribution of services necessary for people in the event of threats. The reduced VAT rate covers services provided to: the Strategic Reserves Agency, medical entities and local government units, i.e. entities performing the function of key coordinators and, in a way, intermediaries for the assistance provided.
The 0% VAT rate will apply provided that a written agreement is concluded between the taxpayer and one of the above-mentioned entities, from which it will be concluded that the donated goods or services will be related to helping the victims of the Russian aggression against Ukraine. The introduction of the above-mentioned The mechanism will ensure a minimum of control over the targeting of the introduced preferences and will allow taxpayers to direct their aid to entities that guarantee the correct use of the donated goods or services. The donation agreement may take the form of an electronically signed declaration of will or a scan of a handwritten signature by the donor of the agreement, sent by e-mail to the entity for which free services are provided. Documents sent in this way should also be signed by the recipients of these benefits.
The regulation is temporary, the VAT rate of 0% for the indicated transactions will be applicable until June 30, 2022. At the same time, such a solution does not exclude the possibility of further, if necessary, extension of the preferences.