0% VAT on services and goods transferred in connection with the conflict in Ukraine

On March 4, 2022, the Minister of Finance issued a regulation allowing the application of a 0% VAT rate on goods and services.

The application of the preferential VAT rate applies to a donation or gratuitous service related to assistance to victims of the consequences of hostilities on the territory of Ukraine.

The benefits or goods must be donated to the Government Strategic Reserve Agency, medical entities or local government units.

The condition is to conclude a contract with the entity to which the goods or services will be provided.

The regulation applies retroactively from February 24 to June 30, 2022.