On 18 March 2021 the Court of Justice of the European Union (case C-895/19) confirmed that the Polish provision excluding the possibility of settlement of output VAT and input VAT in the same tax period after 3 months from the date on which the tax obligation arose is inconsistent with the VAT Directive. What it […]
Real estate rich companies are eligible for a lower real estate tax rate
The mere ownership of real estate by an entrepreneur does not determine the real estate tax rate. This is the outcome of important judgments issued in 2021 – first, by the Constitutional Tribunal (TK) in February (ref. no SK 39/19) and then by the Supreme Administrative Court (NSA) in March (ref. no III FSK 895/21 […]
The Ministry of Finance presents a draft of explanations regarding the due diligence obligation related to transactions where the beneficial owner of the payment is located in a tax haven
Regulations regarding settlements with tax havens have been part of the TP regulations since 2000. Since then, obligations to document transactions with related entities were indirectly transferred to settlements executed by taxpayers with tax haven-based entities. At the end of 2020, the legislator took a big step forward by incorporating changes to regulations regarding settlements […]
The Ministry of Finance presented a package – SLIM VAT 2
On 18 February 2021, the Ministry of Finance presented a new draft called SLIM VAT 2. The package aims to simplify the invoicing procedure, reduce formalities and improve the liquidity of companies using the split payment mechanism. The most important proposed tax changes: Art. 22 sec. 2e and 3 Specification to which delivery should be […]
Brexit – the major VAT and Customs consequences of the United Kingdom’s exit from the European Union
On January 1, 2020, the United Kingdom (UK) left the European Union (EU) on the basis of an agreement concluded with the EU. The Brexit will change the VAT and customs rules in transactions between the EU Member States and British entities. Therefore, companies should adapt themselves smoothly for the upcoming changes, in order to […]
VAT Fiscal Representative for non-EU companies
Non-EU established companies should appoint a Fiscal Representative to operate in most EU countries. The Fiscal Representative is required for entrepreneurs starting their operations in Poland. Exception! As of January 1, 2021, the British and Norwegian companies are exempt from the obligation to appoint a Fiscal Representative in Poland. This change was announced on February […]
Refinancing of employees’ remuneration should be taxed?
Entrepreneurs who received support under Article 15g/15gg of the Anti-crisis Shield may be obliged to pay tax on the additional taxable benefit in the amount of the received funds. According to the authorities refinancing of employees’ remuneration received from the Guaranteed Employee Benefits Fund (FGŚP) should be subject to CIT. According to the approach initially […]
General tax ruling of the Ministry of Finance on the qualification of fuel card transactions for VAT purposes
On 15 February 2021, the Ministry of Finance issued a general tax ruling regarding qualification for VAT purposes of fuel card transactions. The ruling confirms the theses of CJEU’s judgment of 5 May 2019 in the Polish case Vega International C-235/18, indicating premises allowing to distinguish a supply of goods among three entities (taxed with […]
NEW RULES IN THE SETTLEMENTS OF INVOICE CORRECTIONS FROM 1 JANUARY 2021
As of 1 January 2021, the changes in the VAT Act regulations related to the reporting of the invoice corrections so-called „SLIM VAT package” came into force. One of the most important implemented changes is related to the new method of invoice corrections reporting for the purpose of the VAT settlement. Unfortunately, the simplification as […]
Proposed amendments to the Act on Counteracting Money Laundering and Financing of Terrorism
On 19 January 2021, the Polish Parliament (the Sejm) received a government draft amendment to the Act on Counteracting Money Laundering and Financing of Terrorism aimed at implementing changes in AML directives. What is about to change? Changes to the Central Register of Ultimate Beneficial Owners (CRBR) Extension of the catalogue of entities obliged to […]