It becomes more fiscally advantageous to donate products than to throw them away

Minister of Finance Vincent Van Peteghem is making donations for charitable purposes more tax-friendly. In this way, he wants to encourage entrepreneurs to stop destroying vital goods.

This summer, the consequences for VAT when entrepreneurs give away essential goods were already clarified. Minister of Finance Vincent Van Peteghem is now also sending out a circular to clarify the consequences for income tax.

Thus, all costs associated with donating vital goods for charitable purposes become tax deductible. The donating company also does not have to worry that this will be classified as a taxable permissible abnormal or benevolent benefit received.

“The coronavirus crisis has greatly increased the pressure on food banks. We need to encourage companies and businesses to donate to charitable organisations goods that are vital but not saleable. That is why we are making it more fiscally advantageous to donate than to throw away.”

Vincent VAN PETEGHEM, Deputy Prime Minister and Minister of Finance

THE FOLLOWING GOODS QUALIFY:

• Foodstuffs that are intended and fit for human consumption, but are no longer fit for normal sale. This excludes spirituous beverages.
  • Foodstuffs whose expiry date is approaching;
  • Foodstuffs whose packaging is damaged or no longer meets the required commercialisation standards;
  • Foodstuffs for which the production standard set by the manufacturer has not been met or for which the usual period of commercialisation has expired.
• Essential non-food items (basic hygiene products, clothing, school utensils, etc.) which, because of their intrinsic characteristics (colour, size, texture, etc.), can no longer be sold at the original conditions of commercialisation.

 THE FOLLOWING TAXPAYERS CAN BENEFIT FROM THE SCHEME:

• Producers and distributors;
• Taxpayers who have purchased foodstuffs in order to use them in the context of their economic activity (e.g. a hospitality sector operator).

 DONATIONS MAY BE MADE TO THE FOLLOWING ORGANISATIONS:

• Food banks;
• Any administration or public authority within the scope of their missions to distribute food aid to the needy;
• Any charitable organisation recognised by a public authority;
• A distribution platform recognised by the Minister of Finance or his delegate.