Why is this important?
In Poland, tax authorities very often deny taxpayers the right to deduct VAT due to the finding that the taxpayer did not exercise due diligence and should have known that he was participating in a supply chain in which tax fraud could have occurred.
Taxpayers, in order to avoid having their tax accounts challenged, face the difficult task of proving that they have exercised due diligence in their transactions with their counterparties. Moreover, no national laws indicate exactly what ‘due diligence’ is, leading to increasingly restrictive interpretations by tax authorities.
How can we help?
We will analyze the circumstances of the transaction in terms of due diligence in VAT.
We will prepare a set of procedures to limit the entrepreneur's risk of involvement in VAT fraud.
We will represent the taxpayer in proceedings before authorities and courts if it is found that the taxpayer has failed to exercise due diligence.
Feel free to contact us
Tomasz Michalik
Partner | Tax adviser | Head of the VAT Practice E: tomasz.michalik@mddp.pl T: (+48) (22) 322 68 70
Jakub Warnieło
Senior Manager | Tax adviser | Head of Tax Litigation Team E: jakub.warnielo@mddp.pl