The Recovery Package in the context of tax changes
Following the Government announcement on the Recovery Package, the related amendment to the tax regulations was published. Below we summarise a selection of the most important changes in this area.
The Minister of Finance has decided on VAT exemption for respirator supplies for a limited period. However, the VAT deduction is not possible if the supplier delivered these goods to customers including VAT; and this is not the only unclear issue about the decision. What else do you need to pay attention to and what are the news in the CJEU judgments?
Decision on VAT exemption for respirators
By a decision issued on 1 February 2021, the Minister of Finance exempts supplies of respirators (e.g. of the FFPII type) delivered in the period from 3 February 2021 to 3 April 2021 from VAT. A somewhat awkward fact about this exemption is that it is presented as mandatorily applicable and that no VAT deduction is possible for customers to whom their suppliers deliver respirators including VAT during the given period. Equally strange is the Minister’s idea that VAT on advance payments for respirator supplies paid before 3 February 2021 that were legitimately subject to VAT has to be corrected. These facts are almost alarming as the wording of the current decision corresponds to the wording of decisions previously issued by the Minister, where such principles were not applicable according to the publicly delivered opinion of the General Financial Directorate.
Judgments of the CJEU
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