
OECD Common Reporting Standard amended to reduce nonprofit burden
November 9, 2022
Ken Burnett & Ken Phillips to present at Polish International Fundraising Conference
November 9, 2022The VAT Act has temporarily changed in Finland to make goods being donated to those fleeing the war in Ukraine VAT free.
In May, the government submitted a proposal to parliament for the temporary amendment of the VAT Act and this has now been accepted.
Under the change, domestic sales of goods intended as donations to those fleeing Russia’s attack on Ukraine, as well community purchases from other member states are VAT free. Services related to the delivery of such goods are also included.
The tax exemption mainly applies to sales to nonprofit organisations. Under the exemption, a company registered in the VAT register can deduct the value added tax included in the purchase of these goods and services in its VAT return.
Eligible goods include food, hygiene supplies, medicines and medical supplies, clothes, blankets and emergency accommodation supplies. An example of an eligible service could be one providing meals. The amendment complements a tax exemption applicable to the import of these goods.
Both exemptions took effect on 1 July this year and apply to the sale, importation and corporate procurement of goods or services between 24 February 2022 and 31 December 2022.
Picture of Helsinki by Tapio Haaja on Pexels