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. This rate applies to all types of benefits that may be necessary to support victims in this conflict.
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. 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.
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 0% VAT rate covers services provided t 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 assistance to those injured as a result of hostilities in Ukraine. 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. It should be clear from the documentation that the declaration of intent was submitted by both parties.
At present, the 0% VAT rate applies to services made from February 24 to June 30, 2022. However, depending on the development of the situation, this solution may be extended.