04.28.22

VAT assistance to Ukraine

The past 2 years have demonstrated a direct correlation between significant world events and the fiscal measures countries enact. This has been particularly notable with the coronavirus pandemic but is also becoming more apparent with recent events in Ukraine.
We’ve previously seen countries such as Romania taking measures to ensure that all goods and services provided to persons affected by the war will not be subject to VAT.
Poland is adopting multiple similar measures. The Polish National foundation of Tax Advisors has stressed that no public associations will benefit from any tax relief on aid from Ukraine.
Poland is also considering the revision of a current decree, which would mean a 0% VAT rate would be applied to free-of charge deliveries of goods (or a supply of services) which would be aimed at assisting victims of Ukraine’s armed conflict.
This would affect all deliveries / supplies made between 24 February 2022 and 30 June 2022, if approved by the Polish Parliament.
We can expect to see many countries adopting similar measures, particularly bordering countries in close proximity to the conflict.