The Polish Ministry of Finance Feb. 10 opened a consultation on draft explanations regarding the VAT exemption for defense-related supplies made under contracts supported by EU Security Action for Europe (SAFE) instrument funds, due to the ongoing Russia-Ukraine conflict. The draft explanations clarify that the exemption: 1) allows the right to deduct VAT paid at the preceding stage; 2) requires suppliers to obtain a VAT exemption certificate stamped by the competent authority of the purchasing entity’s EU country; 3) applies to the last transaction in the chain between the purchasing entity and the supplier; 4) applies to supplies, intra-Community acquisitions, …
