Czech News - September 97 - Ministry Of Finance Instruction - Instruction D - 15

In connection with floods which impacted large areas of the Czech Republic, the Ministry clarified the application of VAT on provision of humanitary aid.

According to the instruction, gifts provided in a monetary form are not subject to VAT. Non-monetary gifts are exempted from charging of VAT and should be included in the group of exempt supplies when calculating the coefficient for VAT reclaim. The Instruction was published in Finaneni zpravodaj 7 - 8/1997.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information on the above, please contact Mr Richard Fletcher by telephone on +420 2 2440 1300 or E-mail directly to richard.g.fletcher@arthurandersen.com

You may also wish to read through related material on the Czech Republic provided by Arthur Andersen. You can view the entire archive via the Internet on Business Monitor Online (http://www.businessmonitor.co.uk), or via your online provider by entering "Arthur Andersen" and "Business Monitor" as a free text search.