Darování zboží: GFŘ zpřesňuje pravidla pro stanovení základu daně

The General Financial Directorate (GFD) has published an updated Guidance on the Application of VAT to the Free-of-Charge Supply of Goods (available HERE), replacing the previous guidance issued in 2023. The updated guidance provides a more detailed interpretation of how to determine the VAT base when goods, for which input VAT has been deducted, are donated free of charge.

The free-of-charge supply of goods in respect of which input VAT was deducted is subject to output VAT. For purchased goods, the tax base is derived from the acquisition cost, taking into account the condition of the goods at the date of donation. In simplified terms, the market value may be used, but not in excess of the original acquisition cost. For goods acquired otherwise than by purchase, the tax base corresponds to the value of comparable goods; where such value cannot be determined (for example, in the case of unique goods not commonly available on the market), the tax base is equal to the total costs incurred in acquiring the goods as of the date of donation.

The GFD accepts a value approaching zero for goods that have effectively lost their commercial usefulness, such as food products nearing the end of their shelf life, goods with damaged packaging, cosmetics, and now expressly also textiles (e.g. seasonal collections after the season has ended, incomplete size ranges, or defective goods). In contrast, for commonly traded goods such as laptops or mobile phones, the charitable or social purpose of the donation alone does not justify a reduction of the tax base.

Taxpayers must be able to substantiate both the objective reasons for the reduction in value and the donation itself, for example through internal policies and evidence of their actual application, documents relating to discount campaigns, inventory records, donation agreements, or transfer protocols. Where the withdrawal of goods from sale is based on an internal business policy, it must be demonstrated that the policy constitutes a long-term and genuinely applied business strategy. If goods are acquired with the intention of donating them from the outset, no right to deduct input VAT arises and the subsequent donation falls outside the scope of VAT (subject to the exception under Section 68(15) of the VAT Act).

If the VAT treatment of donated goods is relevant to your business, we would be pleased to assist you in assessing the correct VAT treatment, determining the appropriate tax base, and ensuring compliance with the related documentation requirements.

Authors:

Ivana Krylová

Daniel Dvořáček