Text file: 6452.txt
author: "Toma\u017E Rudolf"
downvotes: 0
end consideration date: 2015-02-06
id: '6452'
number comments: 1
number views: 712
proposal type: Competent authority response
response: "Response from the Ministry of Finance\nSeveral initiatives have been taken\
  \ in the past to exempt fire-fighting organisations from paying certain taxes (including\
  \ VAT on the supply of protective and rescue equipment). It is a fact that an important\
  \ part of the country's disaster protection system is represented by volunteer rescuers\
  \ (firefighters, cavers, mountain rescuers and others), who are grouped together\
  \ in various voluntary associations or other non-governmental organisations (NGOs).\
  \ Volunteer firefighting associations, in particular, also try to raise part of\
  \ the funds for their activities by organising public events such as firefighters'\
  \ fetes, etc. The promotion of the development of the system has been attempted\
  \ to regulate both firefighters and other rescuers through various incentives, and\
  \ in particular by regulating their status through various laws (Law on Protection\
  \ against Natural and Other Disasters, Law on Firefighting, etc.). However, when\
  \ considering the possibilities of promoting the development of the above-mentioned\
  \ area through tax measures, the following points should be taken into account in\
  \ the area of VAT taxation.\nThe system of VAT taxation of supplies of goods and\
  \ services in Slovenia is in line with EU legislation in this area, in particular\
  \ Council Directive 2006/112/EC on the common system of value added tax (hereafter:\
  \ VAT Directive). Protective and rescue equipment is not included in the list of\
  \ supplies of goods and services listed in Annex III to the VAT Directive, to which\
  \ EU Member States may apply a reduced rate of VAT.\nAccording to the Value Added\
  \ Tax Act (hereinafter: VAT Act-1), supplies of goods and services performed by\
  \ a taxable person in the course of his economic activity in the territory of Slovenia\
  \ for consideration, acquisitions of goods within the Union and imports of goods\
  \ are subject to VAT. Amounts paid by taxable persons to persons established under\
  \ the regulations for the purpose of carrying out humanitarian activities (including\
  \ in relation to firefighting as a humanitarian activity under the Firefighting\
  \ Act), other than in consideration for the supply of goods or services, are not\
  \ subject to VAT.\nVAT is exempted in the VAT Act for the supply of services by\
  \ non-profit organisations with humanitarian objectives to their members in return\
  \ for membership fees fixed in accordance with their rules, and for the supply of\
  \ goods directly related to those services, provided that such exemption is unlikely\
  \ to lead to distortions of competition. In addition, supplies of goods and services\
  \ by those organisations relating to fund-raising events organised by those organisations\
  \ on an ad hoc basis and solely for their own benefit are also exempt from VAT and\
  \ such exemption is unlikely to lead to distortions of competition.\nIt is also\
  \ not possible to ensure that protective and life-saving equipment is supplied to\
  \ firefighting organisations exempt from VAT because of the general features of\
  \ the operation of the VAT system, since such a special tax treatment of a particular\
  \ supply of goods would be based on who is the recipient or what source of funds\
  \ is used to pay for the supply, would undermine the principle of tax neutrality\
  \ and equal treatment of taxable persons in the exercise of an economic activity\
  \ on the market, in the specific case of suppliers of protective and life-saving\
  \ equipment, who would also not be able to deduct input VAT, or would not be able\
  \ to deduct it in full, as a result of the exempt supplies.  \nIn the light of the\
  \ above, the issue of the payment of VAT on purchases or upgrades of protective\
  \ and rescue equipment by volunteer firefighting associations or other volunteer\
  \ rescuers cannot be dealt with under the VAT system, as the Ministry of Finance\
  \ has clarified in previous discussions with various representatives of firefighting\
  \ organisations and other initiators in this respect."
response date: 2019-11-20
response due date: null
sent date: 2015-01-08
title: Abolition of value added tax on the purchase of equipment for protection and
  rescue.
upvotes: 15
url: https://predlagam.vladi.si/predlog/6452
