VAT

As a result of the planned introduction of mandatory KSeF, taxpayers will not only be subject to new obligations but, at the same time, if they fail to comply with some of them, they will face negative financial consequences.

On April 27, 2023, the CJEU issued a judgment in Case C-677/21 (Fluvius Antwerpen vs. MX) concerning the VAT taxation of illegal consumption of electricity by an individual. In the case under review, the distribution system operator, after discovering the non-contractual consumption of energy, issued an invoice for the supply of electricity to the aforementioned individual containing VAT. The amount due on the invoice was calculated on the basis of the actual energy consumption of this person based on the metered meter.

The disposal of commercial real estate, together with additional assets used to carry out a specific business activity, may have diametrically different VAT consequences depending on the classification of the subject of the transaction as either goods or a business/organization thereof. This is because the transaction of disposal of a business/organized part of a business is not subject to VAT.  

VAT-related regulations are an important part of financial regulation for businesses in Poland. Often, however, these regulations can be complicated and incomprehensible to the average businessman. One such issue is the taxation of gratuitous transfers of goods. In this blog post, we will take a closer look at when such transfers are subject to VAT, in accordance with Article 7(2) of the VAT Act. We will also discuss issues related to exceptions to this rule, define the concepts of “gifts of small value” and “samples,” and provide examples of tax authorities’ interpretations in the context of gratuitous transfers of goods.

Sales promotions and significant price reductions are common strategies used to attract customer attention and increase sales. Promotional prices, often drastically reduced, are often part of the marketing strategies of many companies. While these activities are beneficial to consumers, for businesses they can have important tax consequences.

In some industries (e.g., manufacturing, FMCG), sales-supporting promotional actions involving the transfer of prizes to consumers or businesses are regularly used, the organization of which is entrusted to specialized advertising agencies. As part of the organized action (e.g., a contest or lottery), the task of such an agency is, among other things, to acquire and transfer prizes. What are the VAT implications of such an action? Can the inclusion of the value of the prizes in the agency’s invoice for the marketing service provided entail a VAT risk for the principal? It is worth thinking about this already at the stage of planning the action and estimating its costs.

The discussion of the VAT implications of converting perpetual usufruct of land into ownership is becoming increasingly important. This complex legal issue is related to both state-owned and local government-owned real estate that is subject to perpetual usufruct. In this material, we will analyze the modes of converting perpetual usufruct to ownership and the related tax consequences, which can be of significant importance to taxpayers.

We live in a rapidly changing tax reality, with dozens of new regulations introduced almost every year. The complicated, unstable tax system presents taxpayers with challenges in correctly interpreting and applying the rules. An individual tax law interpretation appears to be a key tool that offers essential support. It not only assists in understanding the law, but also protects against its incorrect application. Nonetheless, situations arise that complicate the process, such as “reasonable suspicion of abuse of the law.”