Another German VAT group question The CJEU judgment of 11.7.2024 in case C-184/23 is another judgment on VAT groups. The preliminary question in this case was (again) initiated by the German Federal Fiscal Court, which has recently been ‘actively’ asking the Court about the nature of VAT groups. This is interesting as VAT groups in…
International groups often undergo business restructuring. If done between related parties, it must comply with the arm’s length principle. We understand that each restructuring can have its unique characteristics, which complicates the verification of its market nature. Additionally, restructuring under transfer pricing regulations may involve various, sometimes unexpected, transactions. What do the OECD guidelines say…
Should it be inferred from the draft that the concept of a structure takes precedence over the definition of a building? The intention of the drafters was to resolve disputes in the “structure or building” area. It is relatively clear to indicate that the precedence of the definition of a building applies to complex structures…
The latest edition of Santander Trade Barometer reveals that nearly a third (28%) of UK domestic businesses are planning global expansion within the next three years, marking the highest level in two years. Additionally, 56% of businesses in the US, 39% in Spain, and 38% in Poland are also contemplating cross-border expansion. Entrepreneurs are going…
8% or 5% VAT rate in catering? On Monday 24 June this year the Supreme Administrative Court (NSA) passed an important resolution (ref. I FPS 1/24) related to the application of VAT rates in the catering industry. Although the resolution relates to the legal situation prior to 2020, i.e. prior to the so-called VAT matrix,…
On 24 June 2024, the Supreme Administrative Court (hereinafter: NSA), in a judgment by seven judges [1], decided that the assignment of rights from a developer agreement constitutes a service subject to 23% VAT and, therefore, the reduced 8% VAT rate applicable to the supply of a residential unit does not apply. In its ruling,…
A tax representative is an institution provided for in the Polish Value Added Tax (VAT) Act. Its purpose is to support entities that, due to their business activity, are required to settle VAT in Poland but do not have a registered office or fixed place of business in Poland. The representative ensures proper VAT settlement.…
Transfer pricing adjustments (TP adjustments) are a complex and wide-ranging topic and their correct accounting is crucial. It is important to consider the perspective of both parties to the transaction before making adjustments. Why are they so important? Eliminating tax return errors – correct adjustments can help eliminate potential tax return errors, Secure recognition of…
The main principle of the game is the same International groups can manage the topic of transfer pricing in two ways – centrally and locally. Regardless of the choice of approach, the basic principle of transfer pricing remains the same. We are talking about the arm’s length principle, according to which settlements between related parties…
Although it has been the accepted position in Poland for many years that illegal consumption of energy or heat is not a VAT-taxable activity because the charges levied on illegal consumers is of a compensatory nature, this position was recently overturned by the Supreme Administrative Court (NSA) in its judgment of 24 May 202 4,…