VAT

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.

The VAT treatment of so-called gratuitous benefits for private purposes of employees still raises various controversies. In practice, it happens that taxpayers who have doubts in this regard decide to “simplify” by both deducting VAT from purchase invoices and charging this tax on the gratuitous transfer of purchased services to employees. In the ruling in question, however, the SAC disagreed with this approach proposed by the taxpayer.

The National e-Invoice System is to become mandatory as of July 1, 2024. The advanced legislative stage of the government’s project indicates that this deadline seems realistic. The above means that entrepreneurs have less than a year to prepare for the upcoming revolutionary changes. Given that fulfilling KSeF-related obligations requires a significant commitment, taxpayers should be aware that, counter-intuitively, they do not have much time to begin the process of implementing KSeF in their organization. Please find below a summary of the most important issues to consider as part of this process.