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In the individual interpretation of 23 April 2024, 0112-KDIL1-2.4012.16.2024.2.DS, the Director of the National Revenue Information (KIS) assessed the possibility of applying a VAT exemption for the rental of rooms such as storage units, compartments, and cellars by a cooperative. According to the description in the application for interpretation, these rooms are used by residents of residential buildings managed by the cooperative mainly for storing bicycles, strollers, preserves, etc.

Spaces within shopping centers where devices (amusement machines) intended for children are installed do not constitute “amusement parks,” and thus the purchase of tokens allowing access to these devices does not qualify as an entry fee to such a park. Consequently, in this situation, there is no basis for applying the reduced VAT rate (CJEU Order of 14 March 2024, C-576/23, Elite Games SRL).

On July 23, 2024, the Constitutional Tribunal (case no. K 13/20) reviewed an application by the National Council of Tax Advisors regarding the constitutionality of certain provisions within the Tax Ordinance and the Act on Tax Advisory Services in relation to the Polish Constitution. The case concerned the obligations imposed on tax advisors to disclose information on tax schemes and the associated breaches of professional secrecy.

Prepared by the Ministry of Finance, the draft amendment to the Act on Local Taxes and Fees (UPOL), among others, introduces a number of significant changes scheduled to take effect on January 1, 2025, with a specific exception. Although, according to the legislature, the changes are intended solely to clarify existing provisions in light of national court rulings and aim merely to preserve the fiscal status quo, there is concern that they may, in fact, expand the current scope of taxation.

The case in question involved a natural person – a farmer, registered as an active VAT taxpayer, engaged in milk production. This taxpayer was acquiring land plots for the purpose of expanding his farm, with the acquisition not subject to VAT.

Estonian CIT, also known as a lump sum on corporate income, is an attractive taxation model, but not every entrepreneur can take advantage of it.One of the key requirements to qualify for Estonian CIT, is to meet certain employment conditions. The regulations require a company to have at least three full-time employees for at least 300 days in a tax year.

The Estonian CIT, or flat rate on corporate income, is a favorable form of taxation, but it comes with the concept of hidden profits, which can be problematic for entrepreneurs.Hidden profits are monetary or non-monetary benefits made to shareholders, partners or their affiliates. The regulations are designed to prevent the circumvention of dividend taxation thrugh various forms of transfers of value.

The Estonian CIT is an attractive form of taxation, but its use comes with certain restrictions on the company’s structure. Can a silent company benefit from this tax regime?