Conditions for the application of individual pre-deduction factors for VAT deduction
The WSA in Rzeszów, in a judgement of 28 May 2024, ref. I SA/Rz 77/24, dismissed the foundation’s complaint against the individual interpretation regarding the refusal to apply individual VAT pre-coefficients. The court agreed with the head of the KIS that the pre-factors proposed by the foundation for VAT deduction are imprecise and do not reflect the specific nature of the foundation’s activity.
Transfer pricing adjustment – what is worth knowing about it?
Transfer pricing is one of the most difficult areas of tax law. The regulation of transactions between related parties aims to ensure that the prices determined reflect market conditions and do not lead to tax avoidance. In this context, the transfer pricing adjustment becomes an important tool to align tax settlements with actual economic conditions. It is worthwhile to understand what exactly a transfer pricing adjustment is, under what circumstances it can be applied and what risks are associated with it.
What is the tax on the sale of a business?
The decision to sell a business is one of the most important steps for an entrepreneur. This process involves not only legal and business aspects, but also tax obligations. It is advisable to find out in advance which taxes apply to the sale of a business in order to prepare well for the transaction and avoid unpleasant surprises. In this article, we explain which taxes apply to the sale of a business and what the amount depends on.
Estonian CIT – how to meet the employment condition?
The Estonian CIT, or flat rate on corporate income, is a popular tax arrangement that defers taxation of company profits until they are distributed. However, to take advantage of this favorable system, entrepreneurs must meet several conditions. One of the most important is the employment requirement. In this article we explain what this condition is and how to meet it.
Transfer pricing documentation – key terms
In today’s global business environment, transactions between related parties are the order of the day. As a result, tax authorities are increasingly focusing on controlling transfer pricing to prevent erosion of the tax base and shifting of profits to lower-tax jurisdictions. One of the key responsibilities of companies is to prepare appropriate transfer pricing documentation within certain deadlines. In this article, we will outline the most important deadlines related to transfer pricing documentation and tips on how to prepare for them.
VAT implications of charging electric vehicles through a third party (opinion of the CJEU Advocate General)
The opinion in question was issued on April 25, 2024 in Case C-60/23 Skatteverket v. Digital Charging Solutions GmbH (DSC). DSC is in the business of providing electric vehicle users with access to a network of charging points operated by operators with whom DSC has entered into separate agreements. DCS provides EV users with a card and an authentication application to charge their vehicles at these points. Based on invoices received from the said operators, DCS invoices users monthly for the amount of electricity supplied to them. DCS also charges its customers a monthly fixed fee for access to the application, regardless of whether the user actually purchased electricity during the period.
How should the so-called non-transactional WDT be documented?
The movement of the taxpayer’s own goods (belonging to the enterprise) from the territory of Poland to the territory of another EU member state shall be considered an intra-Community supply of goods (hereinafter: “WDT”). The above-mentioned own goods shall be understood as such goods which have been manufactured, extracted, purchased, including as part of intra-Community acquisition of goods, by a taxpayer in the territory of Poland within the framework of his business activity, or imported into the territory of Poland as part of importation of goods, if they are to serve the business activity of the taxpayer
Sale of a set consisting of goods taxed at different VAT rates
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.