Poland: VAT, tax relief measures related to conflict in Ukraine

Effort to provide relief for those affected by the conflict in Ukraine

Effort to provide relief for those affected by the conflict in Ukraine

Tax relief measures are being provided or are proposed in an effort to provide relief for those affected by the conflict in Ukraine.

The relief includes the following:

  • The Minister of Finance on 4 March 2022 issued a decree to amend the rules for goods and services subject to the reduced value added tax (VAT) rates. Under the decree, a VAT rate of 0% is to be applied to “free-of-charge” deliveries of goods or provision of services aimed at supporting victims of the armed conflict in Ukraine for deliveries made between 24 February and 30 June 2022. The preferential treatment can also be applied to contributions made to certain governmental agencies. The 0% rate can be applied, provided that the taxpayer and an identified entity enter into a written agreement stipulating that the donated goods and services will be provided to those affected by the conflict in Ukraine.
  • Proposals would enhance the rules for the deductibility of the price of goods and services that would be intended to counteract the effects of the armed conflict in Ukraine for the period 24 February through 31 December 2022.
  • Expenses incurred with regard to providing certain relief (such as free-of-charge medical assistance granted to non-governmental organizations) would also be treated as tax-deductible costs.
  • Another measure would exempt from individual (personal) income tax certain benefits received from natural persons and companies by Ukrainian citizens residing in Poland.

Read a March 2022 report prepared by the KPMG member firm in Poland

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.