No VAT due on donations to Non-profit organizations

Pag. 48700:

Tax regime for donations of products.

• One. The wording of rule 3.ª, of section Three of Article 79 of Law 37/1992, of December 28, 1992, on Value Added Tax, is amended to read as follows:
  “3.ª However, if the value of the goods delivered had undergone alterations as a consequence of their use, deterioration, obsolescence, deterioration, depreciation, revaluation or any other cause, the value of the goods at the time the delivery is made shall be considered as the taxable amount.
  For the purposes of the provisions of rule 3. ª above, it shall be presumed that a total impairment has taken place when the transactions referred to in this paragraph Three have as their object assets acquired by non-profit entities defined in accordance with the provisions of Article 2 of Law 49/2002, of December 23, on the tax regime for non-profit entities and tax incentives for patronage, provided that they are used by the same for the purposes of general interest that they develop in accordance with the provisions of Article 3, paragraph 1.º, of said Law.”.
• Two. A new section Four is added to Article 91 of Law 37/1992, of December 28, 1992, on Value Added Tax, with the following wording:
  “Four. The rate of 0 percent shall be applied to the delivery of goods made as donations to non-profit entities defined in accordance with the provisions of Article 2 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, provided that they are used by the same for the purposes of general interest that they develop in accordance with the provisions of Article 3, paragraph 1.º, of said Law.”

Source Boe.es

---

---