Does the tax authority have the right to deny the taxpayer the right to deduct input VAT from a transaction that, in its opinion, was not subject to taxation at all? At first glance, it seems obvious that it does – after all, the supplier can correct the invoice in such a scenario, ensuring neutrality…
One of the controversial issues among taxpayers and tax authorities is the requirement for foreign company branches operating in Poland to obtain a separate NIP (Tax Identification Number). Tax authorities emphasize in their interpretations that a branch, as a payer of income tax (PIT) advances and social and health insurance contributions, should have its own…
Chain transactions create plenty of difficulties for taxpayers in terms of determining their VAT implications. Currently, intra-Community transactions are less problematic, due to the regulation of these questions as part of the package of “quick fixes” changes introduced in 2020. Chain transactions involving the export of goods outside the EU still often remain problematic in…
The digital reform of the VAT system in the European Union is inevitable. A package of changes to the EU VAT directive called “VAT in Digital Age” (ViDA) has been adopted by the European Parliament at its meeting on February 12th this year. This is the next stage in the legislative process, after the agreement…
The Supreme Administrative Court (NSA) has reaffirmed its stance on the VAT exemption on the sale of real estate acquired from private individuals without VAT being charged. In its judgement of 7 February 2025 (I FSK 1566/21), it confirmed that the exemption under Article 43(1)(2) of the VAT Act does not apply if the lack…
At the beginning of 2025, changes to the regulations regarding the place of taxation of services provided virtually or transmitted, as well as services related to this type of activity, entered into force. The amendment is an attempt to keep up with the dynamically changing socio-economic reality, including, above all, progressing digitalization. The amendment to…
Key Ruling by the Supreme Administrative Court on refund of Excise Tax The Supreme Administrative Court (NSA) issued a judgment on November 25, 2020 (ref. III SA/Gl 493/20) regarding the possibility of refunding overpayment of excise tax by an electricity producer who has passed the burden of the tax on to the consumer. Burden of…
Until recently, the courts held that when using the exemption under Article 30(1) of the Excise Tax Law, in the case of having a decision to redeem certificates of origin issued after the change in rates (i.e., after January 1, 2019), the lower excise rate of PLN 5/MWh should be applied instead of the previous…
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…