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Practical Handbook VAT 2022

6.VAT tax regime for donations of products to non-profit organisations

With effect from 10 April 2022, the third final provision of Law 7/2022, of 8 April, on waste and contaminated soils for a circular economy, modifies Law 37/1992, of 28 December, on Value Added Tax, in relation to the tax regime in the VAT of the donations of products to the non-profit entities defined in article 2 of Law 49/2002, of 23 December, introducing the following modifications:

  • Regarding the determination of the taxable amount of the self-consumption, rule 3 of Article 79.3 of the VAT Law establishes that, for VAT purposes, it will be presumed that there has been a total deterioration of the goods.

  • Article 91.4 of the VAT Law establishes the application of a zero per cent rate to supplies of goods made as donations to these entities.

This regime will be applied provided that the non-profit entities use the assets for the general interest purposes that they develop in accordance with the provisions of section 1 of article 3 of Law 49/2002, of 23 December.