The concept of a tax obligation is defined in Article 4 of the Tax Ordinance, which states that it is a non-specific obligation to make a compulsory monetary payment arising from tax laws, triggered by the occurrence of an event specified in those laws. This definition refers to the provisions of tax laws (including the…
By judgment of February 2nd, 2023, ref. I FSK 1474/20, the Supreme Administrative Court (NSA) denied the taxpayer the right to deduct VAT on expenses for the use of an electric bus by its social partner (Caritas), even though they were essentially part of activities related to corporate social responsibility (CSR). Corporate social responsibility (CSR)…
Why is it important to accurately determine the functional profile? The functional profile should be understood primarily as the role of an entity in a transaction. It depends on its business activity in the market or in the transaction (e.g. manufacturer, distributor) and its level of involvement in the transaction in terms of functions performed,…
The CJEU will settle on the compliance of polish law on management board members liability for tax arrears with EU law. By decisions of 25 January 2024 (case number I SA/Wr 4/23) and 31 January 2024 (case number I SA/Wr 966/22), the Provincial Administrative Court in Wrocław submitted four questions to the CJEU for a…
Recently, intangible services have been one of the key areas reviewed during tax audits. As statistics made available to us by the Ministry of Finance show, service transactions account for almost 30% of all transactions reported by taxpayers in 2020-2021 in the TPR form, of which as much as 10% are intangible services. Intangible services…
This article explores the topic of gift vouchers in light of Articles 8a and 8b of the Polish VAT Act. This article covers the following issues:• What are vouchers under the VAT Act?• What types of vouchers exist?• When should vouchers be settled?• How should vouchers be settled? What are vouchers under the VAT Act…
The topic of providing accommodation free of personal income tax (PIT) has raised many controversies for several years due to the lack of a consistent approach in tax rulings. In a recent tax ruling issued on 10 November 2023 (ref. 0114-KDIP3-2.4011.598.2023.5.MN), the Director of the National Tax Information (DKIS) ruled that a company offering free…
The deadline for payers of personal income tax to issue the IFT-1R information expires soon. The form relates to information on the amount of income (revenue) received by individuals who do not reside in Poland for tax purposes. Who issues the IFT-1R and when? Payers who, in 2023, made payments to individuals, Polish tax non-residents,…
Establishment a permanent establishment and transfer pricing obligations Conducting business in another country may lead to the establishment of a permanent establishment (PE), which carries with it a number of tax obligations, including transfer pricing obligations. Transfer pricing regulations treat a company and its permanent establishment as related parties. In addition, the legislature includes, among…
The definition of a taxpayer in the VAT Act is key to understanding which entities are required to settle and pay VAT in Poland. According to Article 15 of the VAT Act, a VAT taxpayer is any individual, legal entity, or organizational unit without legal personality that independently conducts economic activity, regardless of the purpose…