VAT

In order to increase sales, taxpayers choose to conduct various promotional activities. One example of conducting such activities is selling goods in sets. The benefit on the buyer’s side is that the price he pays for the goods purchased in a set is lower than what he would have had to pay if he had decided to buy the goods separately. This means that the seller has to reduce the price of the goods included in the set. When the goods are subject to taxation at different rates, particularly the basic and preferential rates, the manner in which such a reduction is made can have significant consequences on VAT grounds.

Individual Interpretation by the Director of the National Tax Information Agency dated April 26, 2024, Ref. No. 0112-KDIL3.4012.174.2024.1.AK A VAT taxpayer operating a sole proprietorship in the rental and leasing of real estate (both buildings and premises) applied for an interpretation. The factual state indicated that the majority of the taxpayer’s activities were subject to VAT, with a limited scope of VAT exemption for properties rented for residential purposes.

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).

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.

If the goods are supplied only between two VAT taxpayers, i.e. the seller and the buyer, and the goods are shipped or transported from one EU country to another EU country (or to a non-EU country), the rules for settling VAT are generally simple. As a rule, there is an intra-Community supply of goods (ICS) in the country of dispatch, and an intra-Community acquisition of goods (ICA) in the country of goods’ destination, respectively. And when the destination is an non-EU country there is an export of goods in the country of dispatch and import of goods in the country of the goods’ destination accordingly.

Are you a foreign entrepreneur considering purchase of real estate in Poland? In such a case, it is worth finding out about the VAT consequences of making such a purchase. The key issue from the buyer’s perspective is to determine whether the purchase price of the property includes VAT, and if so, whether and how you can recover it.

Although the law introducing the mandatory National System of e-Invoices (KSeF) for most taxpayers will generally come into force as of July 1, 2024, as an exception, some of the provisions are already in force as of September 1 this year. Given that these provisions regulate important issues from the point of view of correct documentation of transactions in terms of, among other things, the issuance of correction invoices and advance payment invoices, taxpayers should already familiarize themselves with the changes.