As of Wednesday, new regulations introducing a 0% VAT rate on donations for flood victims come into effect. This tax relief applies to donations of goods such as food and clothing, as well as free services like accommodation or the rental of power generators.
Tax Relief for Charitable Donations
The regulation, issued by the Minister of Finance, was published on Tuesday in the Journal of Laws. It allows the 0% VAT rate to be applied to donations made between September 12 and December 31, 2024. The decision to backdate the start date to September 12 aligns with the first heavy rains and resulting floods in Poland.
According to the Ministry of Finance, the 0% VAT rate covers a wide range of goods, including food, blankets, and clothing, as well as essential services like shelter and power equipment rental. Donations must be made through organizations usually involved in disaster relief, such as public benefit organizations, local governments, healthcare providers, and the Governmental Agency for Strategic Reserves.
This initiative aims to encourage businesses to support the relief efforts for those affected by the floods, which have caused significant damage across the country.