It is already the case that financial donations to e.g. Czech organizers of collections for public benefit purposes are deductible from the tax base by the Czech law. When the amendment is passed, it would be newly possible to deduct from income taxes also supplies provided in 2022 for the purpose of supporting Ukraine's defense efforts. At the same time, it will be possible to deduct from taxes the donations provided directly to Ukraine (e.g. through the Ukrainian embassy) or to Ukrainian non-profit organizations. Another proposed modification is that the possibility of deduction of supplies from the tax base may also be used by taxpayers from Ukraine if their taxable income from sources in the Czech Republic constitutes 90% of their taxable income. The current wording of the law still allows tax deduction only for tax residents of the Czech Republic, or under certain conditions from countries of the European Union or the European Economic Area.
From the point of view of the recipient of gratuitous supplies, income for humanitarian or charitable purposes or for public collections organized by legal entities is already today exempt from income tax. In 2022, gratuitous income provided for the purpose of supporting the defence efforts of Ukraine will be newly exempt, i.e. any withholding tax will not be applied on the basis of the amendment. This year, the income of Ukrainian employees will also be exempt from tax when the company provides them and their family members with accommodation in the Czech Republic due to the war conflict in Ukraine. Furthermore, if an employee receives a monetary gift from his employer for the purpose of helping in a difficult life situation, this gift will be exempt from income tax as gratuitous supplies received for humanitarian or charitable reasons.
The parliament could now give its approval to the amendment at first reading. The amendment to the Income Tax Act could become effective at the end of May. It should have a retroactive effect from the beginning of 2022. The financial administration will therefore proceed in accordance with the planned amendment to the law.
VAT in Slovakia is EU-harmonised and based on the EU VAT Directive. In the Slovak VAT Act, there are therefore many regulations that are similar to those in other EU countries. Nevertheless, there are some provisions that apply only in Slovakia.
The Czech name for VAT number (VAT identification number) is DIČ (daňové identifikační číslo). It is composed of the code CZ and the root part / block of the tax number, which has either 8, 9 or 10 digits.
ABOUT YOU has expanded its warehouse network with a location in Slovakia. The new location in Slovakia was chosen primarily because of its favourable connections to the markets in Central and Eastern Europe and it should ensure fast delivery to customers there.