The regulation introducing a zero VAT rate on donations for flood victims was published in the Journal of Laws on Tuesday. The Ministry of Finance announced that it will come into force on Wednesday, September 18.
This is a regulation of the Minister of Finance amending the regulation on reduced rates of tax on goods and services. On Tuesday, it was published in the Journal of Laws. It provides for the possibility of applying a rate reduced to 0 percent. VAT tax for donations for flood victims. As the Ministry of Finance explained in a press release, the regulation will enter into force on September 18, 2024, with the possibility of applying it to donations of goods and free services provided from September 12 to December 31, 2024. The initial date of the possibility of applying preferences is correlated with the date when the first heavy atmospheric precipitation and the first real effects of flooding appeared – the Ministry of Finance informed.
“In connection with the flood, which caused significant material damage, depriving many residents of their homes, the Ministry of Finance is introducing zero VAT for donations of goods and services in connection with assistance for victims of this disaster,” the ministry indicated. It clarified that the preference that entrepreneurs can use to make donations for flood victims will apply to support implemented through entities that usually organize assistance and distribution of benefits in such disasters, i.e.: public benefit organizations, local government units, medical entities and the Government Agency for Strategic Reserves. “The 0 percent VAT rate will apply to donations of all types of goods, e.g. food, blankets, sleeping bags, clothes, but also free services, such as accommodation or rental of power generators, which may prove necessary to mitigate the effects of the disaster,” the Ministry of Finance reported.
Main image source: Shutterstock