The BMF letter of March 17, 2022 on support for Ukraine victims will be renewed, until December 31, 2026, extended. These are the following supports:
Proof of tax-privileged donations: The cash payment receipt, the booking confirmation, e.g. the account statement, direct debit receipt or the PC printout from online banking is sufficient as proof of the donations if the payment is made to support the victims of the war in Ukraine into an account set up for this purpose by a domestic legal entity under public law, a domestic public service agency or a domestic officially recognized association of independent charities including its member organizations. The documents required as proof must be submitted by the donor to the tax authorities upon request and otherwise kept for one year after the tax assessment has been announced.
Fundraising campaigns: A tax-privileged corporation is generally not permitted to use funds for tax-privileged purposes that it does not promote according to its articles of association. If, for example, a tax-privileged corporation which, according to its articles of association, pursues charitable purposes in particular (e.g. a sports club, music club, allotment garden association or traditional association), calls for donations to support those affected by the war in Ukraine, it cannot use the donations for purposes which it promotes according to its articles of association. The following then applies: It is not detrimental to the tax concession if it uses funds that it has received in special campaigns to support those affected by the war in Ukraine directly for the stated purpose itself without amending its articles of association accordingly. Proof of need can be waived. It is also harmless if, for example, the donations are forwarded either to a tax-privileged corporation that pursues charitable purposes or to a domestic legal entity under public law or a domestic public agency to support those affected by the war in Ukraine. The tax-privileged organization that collected the donations must certify corresponding donation receipts for donations that it receives and uses to support those affected by the war in Ukraine. Reference must be made to the special campaign in the donation receipt.
By way of exception, it is also harmless if the beneficiary corporation uses other funds available to it, which are not subject to any other binding effect, to provide direct support to those affected by the war in Ukraine without amending the articles of association. The same applies to the provision of personnel and premises. Proof of need for assistance may be waived.
Temporary accommodation for war refugees: Special-purpose businesses are also facilities for the care, feeding and support of refugees. If special tax regulations apply to the services of these facilities (e.g. VAT exemption or VAT reduction), they are also applied to the services in connection with the temporary accommodation of war refugees from Ukraine. If tax-privileged corporations provide personnel, premises, material resources or other services in return for payment in areas that are necessary for dealing with the effects and consequences of the war in Ukraine, it is not objectionable if these activities are classified as special-purpose operations for both income tax and VAT purposes.
Temporary accommodation: Temporary accommodation in return for payment is to be assigned to the sovereign area without checking whether it is a commercial enterprise of a legal entity under public law. In the case of accommodation in facilities of a business of a commercial nature, the tax treatment is generally based on the general tax regulations. For reasons of equity, the temporary use for the benefit of the victims of the war in Ukraine does not lead to a transfer to sovereign assets with an effect on profits and therefore not to the cessation of the business of a commercial nature. However, for the period of time until the accommodation is (re)used for its original purpose (e.g. as a sports hall), the income of the business of a commercial nature must be set at zero.
Sales tax: If tax-privileged corporations provide personnel, premises, material resources or other services in return for payment that are necessary to deal with the effects and consequences of the war in Ukraine, these activities can be classified as special-purpose operations for both income tax and VAT purposes.