Another extension of the VAT remission for supply of goods and services free of charge (LIBERATION PACKAGE III) (No. 923)
Based on the decision of the Minister of Finance published in the Financial Bulletin No. 9/2020 (available only in Czech), the VAT waiver period for the free supplies of below listed products is extended.
- Basic protective equipment, selected medical devices (e.g. drapes and mouthpieces, respirators, goggles, masks and shields, COVID-19 test kits) and material needed for the manufacturing this equipment and devices.
- Materials needed to produce disinfectants (e.g. to produce alcoholic solutions, hydrogen peroxide and other disinfectants). This applies to taxpayers who are authorized to manufacture such products.
Originally, free of charge supplies of these goods was exempt from VAT until the end of the emergency (see our e-service no. 894 and Financial Bulletin No. 6/2020 – available only in Czech). These supplies are newly exempted from VAT until 31st July 2020. The decisive moment for tax exemption is when the tax liability arises.