With each passing year, courts increasingly confirm that a properly prepared benchmarking study can be an extremely important tool, both for taxpayers and tax authorities. Tax authorities often challenge benchmarking study by either conducting new analyses or modifying those presented by taxpayers. This frequently leads to increased tax liabilities. Therefore, having a reliable transfer pricing…
Following the meeting of the VAT EXPERT GROUP in Brussels on 18 March, the next steps for VAT in the digital age are becoming much clearer. The group, made up of specialised VAT experts, plays a key role in providing information and opinions on the practicalities of implementing EU tax regulations. Three weeks after this…
Today, we present the fourth and final entry in our series on transfer pricing. From previous posts, you already know what transfer pricing is (and certainly what it isn’t), who related parties are, and how to assess whether the prices applied in an intragroup transaction are at arm’s length. You’ve also become familiar with the…
Price adjustments are still not a clear-cut issue and raise questions for taxpayers. In 2023, administrative courts issued rulings on adjustments in three main areas described below. Definition of transfer pricing adjustments It is worth recalling that TP adjustments refer to transactions between related parties and are an important part of business practice. However, their…
The fundamental rule in transfer pricing is the arm’s length principle. When applied correctly, it ensures that related parties conduct transactions under terms that are consistent with those which would be agreed between independent parties. But how do we know that the conditions established in a given transaction are market-based? How can this be verified?…
Intra-group loan Intra-group loans, like other related party transactions, should be made on an arm’s length basis. In order to verify loan transactions to comply with the arm’s length principle, the comparable uncontrolled price method is most often used in the external variant. Data for this analysis is obtained from external specialized databases. Tax authorities…
Have you heard of the “six degrees of separation” theory? It’s a concept that assumes that, as a resident of Earth, you can meet any other person in the world with just six or fewer mutual connections between you and that person, whether through acquaintances, friends, or their family members. What does this theory have…
In the dynamic business world, planning of settlement between related parties is becoming an essential part of groups’ business strategy. Changes in the market affect the development of new technologies, products and services. They determine the activities of companies in achieving economic benefits and competitive advantages. Well planned settlements are the basis for business success,…
One thing is certain: there is no turning back from National e-Invoice System [hereinafter: KSeF]. This was confirmed by the Minister of Finance, Andrzej Domanski, on 21 March 2024 at a meeting where representatives of the ministry summarised the consultation cycle on KSeF and outlined the planned changes to the legislation already enacted. We undoubtedly…
Judgment of the Provincial Administrative Court (WSA) in Warsaw of 21 February 2024, ref. no. III SA/Wa 2083/23. Recently, the Polish energy sector has witnessed an unusual phenomenon: the emergence of negative electricity and gas prices on the market. This situation has given rise to disputes and doubts regarding the VAT treatment of such transactions.…