The Ministry of Finance, following the example of previous regulations issued during the pandemic and in support of victims of the armed conflict in Ukraine, prepared a regulation introducing a temporary 0% VAT rate for free-of-charge supplies of goods and services aimed at supporting flood victims. The possible legal path of a regulation allowing for…
Aim of the SME package: simplify cross-border VAT settlements Currently, traders doing business in different European Union (EU) countries where they are not established must, in many cases, register for VAT. This requirement involves filing VAT returns in each EU country where VAT is due. This process is particularly burdensome for small and medium-sized enterprises…
Supreme Administrative Court draws attention to the economic nature of land sale transactions The Supreme Administrative Court (NSA), in a ruling of 23 August 2024 (ref. I FSK 1670/20), again addressed the issue of the application of the VAT exemption to the sale of undeveloped land. The ruling is in line with previous judgments of…
What is the call-off stock procedure and what is its application? In Intra-Community trade, as a rule, the movement of goods by a taxpayer constitutes an Intra-Community acquisition of goods. This means that the taxpayer carrying out such a movement is required to register for VAT purposes in the country of the buyer and account…
At the end of July, a further version of the draft amendment to the DRS legislation also addressed tax issues. Although it takes into account a significant part of the postulates made by future participants of the system, the solutions proposed in it as to the settlement of VAT in the bail system opens new…
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…
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.…
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,…