Successful defence of the right to input VAT deduction

Case concerning the right to the input VAT deduction on complex supplies related to the major project involving the production and outfitting of innovative modular buildings.

The tax authority denied the company the right to deduct VAT in an amount of approximately PLN 40 million, disputing the actual nature of the acquired services.

Why is the example noteworthy, influential to the market, complex, or innovative

During the tax proceedings, legal representatives from MDDP devised and implemented a comprehensive evidentiary strategy aimed at substantiating the actual nature of the services purchased and, consequently, the company’s right to VAT deduction.

As a result of the VAT Team’s efforts, the proceedings included multiple witness hearings conducted across Poland, the collection and presentation of extensive photographic documentation covering all stages of the transactions, production documentation, and even a video demonstrating the entire production process.

These measures led to the confirmation of the genuine nature of the services and successfully convinced the tax authority that the client was entitled to deduct VAT.

The favourable ruling from the tax authority was of critical importance to the client—not only due to the substantial amount  in dispute but also because the authority confirmed the economic validity of the group’s entire business model. This significantly enhances the client’s tax security for all other accounting periods and facilitates the continued execution of  complex construction projects in Poland and worldwide.

The attorneys in this case were Tomasz Michalik, Jakub Warnieło, and Bartosz Bogdański