Organizations helping Ukraine will use the zero VAT rate

Delivery of goods to charity or public benefit, which will then transfer these goods as part of the help of Ukraine, will be covered by zero VAT rate – according to the draft amendment to the MF regulation published on Tuesday.

A draft ordinance of the Minister of Finance amending the regulation on reduced tax rates on goods and services was published on the pages of the Government Legislation Center.

“Pursuant to this regulation, the delivery of goods made to the indicated entities, bodies or organizations, as well as intra -Community acquisition of goods made by these entities, bodies or organizations, will be subject to a VAT rate of 0 percent, if these goods are used in accordance with the purpose of the provided for the purpose of the regulation, i.e. they will be transferred free of charge/free of charge at the disposal Russia's military aggression against Ukraine, “we read in the justification to the project.

Among the organizations that will be able to use the zero rate, the justification lists The International Committee of the Red Cross, the International Federation of the Red Cross and Red Crescent Associations and the National Association of the Red Cross and the Red Crescent, including the Polish Red Cross.

As stated, it will also include “public benefit organizations, operating on the basis of the Public Benefit Act and volunteering, entered into the list of organizations conducted by the National Institute of Freedom with the status of a public benefit organization, to which the taxpayer of personal income tax may transfer 1.5 percent tax from the tax returns” – said in the justification.

In addition, international institutions such as the United Nations for Children (UNICEF), World Food Program (WFP), the High United Nations Commissioner for Refugees (UNHCR), the United Nations Bureau for Coordination of Humanitarian Aid (U CHA), World Health Organization and International Organization will be able to be used by international institutions Migration (IOM).

“The planned regulation assumes limiting the use of a VAT rate in the amount of 0 percent by excluding the preferences of excise goods and passenger cars covered by the excise duty from the planned scope. The Act (…) excise duty covers goods, whose catalog includes, among others, tobacco or alcoholic products, as well as passenger cars, i.e. goods that are not justified by preferences” – It was given in the justification.

The designed regulations are to come into force on the day after the announcement. (PAP)

ms/ malk/