Aid measures for people affected by the war in Ukraine

There are extensive facilitations and simplifications for donations and other aid measures in favor of people from Ukraine.

People and companies around the world are committed to democracy in Ukraine. The many arrivals from Ukraine receive personal and financial support from citizens and companies. The Treasury is supporting this willingness to help with a comprehensive package of relief and simplifications for donations and other aid measures. The regulations apply to donations and aid provided from February 24, 2022 to December 31, 2022.

• Donations: Taxpayers do not have to submit a donation receipt to the tax office as proof of donations to a special account of a non-profit organization for tax purposes. Regardless of the amount, the deposit slip or the bank's booking confirmation is sufficient as proof.

• Residential transfer: If private companies provide accommodation that was intended for use subject to VAT (hotel rooms, vacation apartments, etc.) free of charge to persons who have fled due to the war in Ukraine, no tax is payable on the free transfer of value and no input tax adjustment is necessary. If the entrepreneurs intend to accommodate flood victims or helpers free of charge when purchasing electricity, water, etc., the input tax deduction is still granted for the same period. The following free transfer of value is not taxed.

• Other Entrepreneur Aids: Support provided by companies for those injured by the war in Ukraine can be considered a sponsorship measure and thus deducted as operating expenses. The prerequisite is that the company aims to secure or enhance its corporate reputation, which can be achieved, for example, by the sponsor drawing public attention to its aid efforts. In addition, the use of business assets and the provision of other services (provision of personnel) for aid purposes does not give rise to a free transfer of value for VAT purposes.

• Nonprofit Organizations: Funds collected by charitable associations and foundations as part of a special fundraising campaign, as well as funds not required for the realization of their own statutory purposes, may be used by them to support aggrieved persons without jeopardizing their own tax recognition, even if this is not provided for in the articles of association. This applies both to direct support by the organization itself and in the case of onward transfer to other tax-privileged organizations for use in supporting aggrieved persons. In the case of persons injured by the war in Ukraine, proof of need for assistance may be waived. Further relief applies to the temporary accommodation of war refugees and other aid provided by charitable organizations or their special-purpose enterprises.