In the world of globalized business, settlements between related entities are commonplace. Transfer pricing mechanisms operate within international capital groups, allowing for the adjustment of companies’ profitability to market levels. While the OECD guidelines organize these issues well in the area of income taxes, many doubts remain unresolved in the case of VAT. In April…
Single VAT Registration is the last of the pillars introduced under the ViDA package, although it will be the first to come into force – from 1 July 2028 – ahead of the other two pillars (Digital Reporting Requirements and Platform Economy). The purpose of these changes is to reduce the need for taxpayers to…
A number of significant and, in some cases, even revolutionary changes introduced in the tax legislation from 2025 require taxpayers to prepare carefully for their proper implementation. Particular attention is required to review the fixed asset records for real estate tax declarations and to adapt their classification to the new definitions. Taxpayers should also adapt…
Does a taxpayer retain the right to deduct when input VAT results from services provided by one of the group companies to both the taxpayer seeking to deduct and the other group members? This issue has been resolved by the CJEU in its judgment of December 12th, 2024, ref. C-527/23. Facts The case concerned the…
A few words about the CJEU ruling on November 21st, 2024, ref. C-624/23, SEM Remont. Case overview The ruling was issued in connection with a transaction in which, in August 2020, the Bulgarian company SEM Remont contracted the Russian company Gidrostroy – Russia to carry out dredging works in the port of Varna. The contractor,…
How does the SME directive change settlements with contractors? The Act implementing the so-called SME Directive has been signed by the President of Poland and published in the Journal of Laws. Currently, a secondary regulation and amendments to the VAT-R form are under consideration. The Directive 2020/285 introduces changes that primarily benefit small and medium-sized…
An important for the property development sector and interesting from the VAT point of view ruling was issued by the CJEU on November 7th, 2024. The case C-594/23 (Lomoco Development ApS and others) was between the Danish Ministry of Taxation and several property development companies. These companies sought to demonstrate the VAT exemption for the…
The Ministry apparently decided to dose up the excitement about the KSeF project and a week after the publication of the assumptions of the draft law amending the law introducing the compulsory KSeF in the list of legislative works of the Council of Ministers, a draft law with an explanatory memorandum was published on the…
On Monday 21 October 2024, the Supreme Administrative Court [hereinafter: NSA] adopted a resolution by a panel of seven judges (ref. III FPS 1/24) concerning the right of the Head of the National Tax Administration [hereinafter: KAS] to impose penalties on banks and other institutions obliged to submit reports within the STIR system. The NSA…
On October 4, 2024, the Court of Justice of the European Union (CJEU) delivered a judgment in the Voestalpine Giesserei Linz case (C-475/23), addressing the right to deduct VAT related to the acquisition of a machine provided free of charge to a subcontractor under a tooling agreement. The judgment pertains to a common practice, especially…