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Czech Republic announces VAT Exemption on Gratuitous Supplies for Covid -19

Czech Republic - Taxscan

The Finance Ministry of the Czech Republic announced the Value-Added Tax (VAT) exemption on Gratuitous goods and services to combat COVID-19. The General Financial Directorate (GFD) has clarified the details of situations qualified under the regime. The goods and services applicable under the regime are those relating to the Integrated Rescue System, the Army of the Czech Republic, health service providers, and social services facilities for COVID-19.To reduce the administrative burden, those supplies made to such institutions are assumed to be VAT exempt.

Supplies to mitigate COVID-19 such as personal protective equipment, respirators, disinfectants, and raw materials for their production will also fall under the exemption list.

The Government also affirmed the deferral of VAT payments, waiver of interest on late payments, and fines on late submission of tax returns. A VAT exemption on imported goods for the pandemic victims has also been announced. This is usually applied for charitable gratuitous imports. VAT exemption will be allowed for imports in return for payment if certain conditions are met.

The VAT exemption will apply with effect from 12 March 2020 and will continue until the pandemic subside.

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