Until 30 June 2022, donations to refugees and fighters in Ukraine – made through specific organizations – will be subject to 0% VAT. Pursuant to the amended law, the zero rate applies to donations and free benefits to organizations specified in the regulation: the Governmental Agency for Strategic Reserves (RARS), medical entities and local government units. There are no NGOs on the list.
Experts believe more changes are necessary. The ‘relocation relief’ should be extended. Changes in accounting for mandate contracts and contracts for specific work made with refugees are also necessary.
“Today, if a Ukrainian citizen fails to produce a certificate of residence from his/her country, the mandator must collect a 20 percent flat-rate income tax”
– says Rafał Sidorowicz, tax advisor and senior manager with MDDP’s personal income tax and employer advisory team.
According to experts, the solutions for the business supporting refugees and those fighting in Ukraine are also insufficient.
“Companies should be able to classify as tax-deductible the costs of benefits (in kind, free services) provided directly to Ukrainian citizens (natural persons), and not only through non-governmental organizations”
– says Magdalena Zamoyska, tax advisor and partner with MDDP.