Tax incentives on donations in public activities
- VAT tax incentives on donations in public activities are not applied by tax exemption, but by participation of the state budget in the payment of Value Added Tax instead of the donor. For each conducted turnover of goods and services as donation realized in goods or services, the VAT is calculated and paid on special account for donations, and the Treasury Department of the Ministry of Finance, after receiving approval for eligibility, makes disbursement of the paid VAT amount on the account of the donor (acting turnover).
- The VAT is not calculated on the value of the cultural, sport or other public events, without excluding the right on deduction of the input tax, if the overall income is intended and used for financing of the activities of public interest.
- On the value for communication service, according the Law on Electronic Communications, when the user by using of the communication service donates funds for financing activity of public interest, VAT is not calculated, without excluding the right on deduction of the input tax.
