31.08.2012

"When charity, donation, philanthropic or other such campaigns are organized, where subscribers send SMSs or make telephone calls, the operator should not charge VAT on the donation sum", state the published today Instructions of the Minister of Finance aiming at uniform application of the VAT Law in the case of donations using SMS or telephone call.

Under Article 2 of the VAT Law subject to value added tax is each taxable supply of goods or services effected for consideration. The Instructions further state that supplies effected free of charge (donation of goods or services) do not fall within the scope of the law.

You may find the Instructions HERE.