Emergency measures – Extension of the VAT remission for supply of goods and services free of charge (No. 905)

In our e-Service No. 894, we informed about the VAT remission for the free delivery of protective equipment (specific items including custom´s nomenclature codes and conditions were published in Financial Bulletin No. 6/2020, available only in Czech).

In the Financial Newsletter No. 7/2020 (available only in Czech), an extension of the VAT remission for services provided free of charge has been published. This remission of VAT is applicable for  supplies of goods and services free of charge to health service providers, Integrated Rescue System Facilities, the Army of the Czech Republic and social services facilities (e.g. donating medical supplies and refreshments for above mentioned subjects, their employees, clients or volunteers who work for them).

The provision of above deliveries free of charge does not cause loss of the right to deduct the VAT. We recommend you to request the confirmation of the donation received issued by donated institution. The above-mentioned tax-exempt deliveries need to be declared on line 26 of VAT return based on the internal document of use.

Both waivers announced in Financial Newsletters No. 6/2020 and 7/2020 have been applicable from 12th March 2020 for the entire duration of emergency, the decisive moment for tax exemption is when the tax liability arise. More information on both waivers can be found on the Financial Administration website (on FN 6/2020 here and on FN 7/2020 here – both available only in Czech).

publikováno 22.04.2020