0% VAT for the supply of laptops and tablets to humanitarian and charitable organizations

Co-Size-Changing

At the moment, the supply of computer equipment to educational institutions may be taxed at 0% VAT upon meeting certain conditions. The new draft amendment to the regulation on goods and services for which the VAT rate is lowered, and the conditions for applying reduced rates, expands the catalog of items whose delivery will be able to benefit from the preferential 0% VAT rate. What conditions will be necessary to apply the 0% VAT rate for the delivery of laptops and tablets?

When is it possible to apply 0% VAT for the delivery of laptops and tablets?

At present, pursuant to Art. 83 (1) (26) of the VAT Act, a reduced tax rate of 0% may be applied to deliveries of computer equipment:

  • for educational institutions,
  • for humanitarian, charitable or educational organizations for further donation to educational establishments free of charge.

However, there is a strict catalog of equipment, the supply of which can benefit from 0% taxation, and these include:
computer central units, servers, monitors, sets of desktop computers;

  • printers;
  • scanners;
  • Braille computer devices (for the blind and visually impaired);
  • devices for digital data transmission (including network hubs and switches, routers and modems).

An additional condition for the application of this rate is the need for the supplier to have the appropriate documents, which should be submitted to the competent tax office, i.e .:

  • an order confirmed by the supervisory body of a given educational institution,
  • a copy of the agreement on the free transfer of computer equipment to the facility.

Meeting all the above conditions entitles to apply the 0% VAT rate.

What changes to the draft amendment to the regulation?

The draft amendment to the regulation on goods and services for which the VAT rate is lowered, and the conditions for applying reduced rates, expands the catalog of goods that may be subject to a preferential 0% VAT rate and slightly changes the conditions enabling its application to these items. In addition to the above-mentioned computer equipment, the reduced rate will also apply to laptops and tablets provided free of charge, and an additional condition for its application will be the obligation to draw up a donation agreement between the taxpayer and the entity receiving the equipment.

The amendment to the act is dictated by the situation related to the coronavirus epidemic, where, in this difficult period for everyone, the support of schools and humanitarian and charitable organizations is particularly important.