VAT 0% for building materials endowment

24th September 2024 the Minister of Finance’s regulation from 23rd September 2024 went into effect and changes the regulation regarding lowered tax from goods and services (Dz. U. z 2024 r., poz. 1399), introducing zero VAT to gratuitous deliveries of building materials in favor of the aggrieved from intense precipitation and floods, which took place in September 2024.

Lowered rate VAT 0% may be applied to unpaid goods deliveries, also known as equalized to taxed sales, based on art. 7 act 2 point 2 of regulation about VAT, which subject are building materials, performed only in favor of strictly designated entities, such as:

1. natural people,
2. entities conducting educational and cultural activities, in the scope of health protection, social care, caretaking of children, adolescents and the elderly, and also in the scope of collective accommodation of pupils and students

• having the right to command real estate for building purposes in the understanding of regulation from 7^th July 1994 – building law:

1. in which as a result of intense precipitation or flood in September 2024 a damage occurred, and
2. which is located in the area of municipality described in the regulations stated based on art. 1 act 2 of regulation from 16^th September 2011 about special solutions related to flood’s results’ removal (Dz. U. z 2024 r. poz. 654).

IMPORTANT

Applying above said preferences is possible under below listed circumstances:

1. Conclusion of signed endowment agreement between a taxpayer delivering building materials and a person/entity in which favor the delivery is being performed,
2. Possession by a taxpayer delivering the goods:of certified, for conformity of a copy to the original, by a social worker conducting an interview, copy of part VII, prepared with omittance of letter A position 7-9 and letter D, of family background survey – prepared with accordance to the template described in appendix no. 1 to the Minister of Family, Work and Politics regulation from 8^th April 2021 regarding family background survey (Dz. U. poz. 893), which states that a person indicated in reg. 1 point 1 has suffered damage in real estate
   – certificate issued by proper bailiff, mayor or president of the city, from which results that the subject indicated in reg. 1 point 2, has suffered damage in real estate, in which activity indicated in reg. 1 point 2 is being conducted.

Full text of regulatin is available here.

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