The distance sale plays an increasingly important role in economic turnover. Its popularity among entrepreneurs results from the possibility of the reduction of fixed costs arising from the maintenance of stationery stores while increasing the extent of potential consumers. During the lockdown introduced due to the prevailing COVID-19 pandemic, the distance sale saved a significant […]
Refusals to issue security opinions on the application of General Anti-Abusive Regulations (GAAR)
The Head of National Revenue Administration (KAS) has completed more than 20 proceedings on the application of the General Anti-Abusive Regulations (GAAR). This resulted in the imposition of tax surcharges exceeding PLN 80M. We have written more on this subject here. What was challenged by the tax authorities? A spin-off of an organized part of […]
New reporting obligation for a specific task contract (umowa o dzieło) as of 1 January 2021
The amendment to the “COVID-19 Act” dated March 31, 2020, introduced an additional obligation for companies engaging individuals under specific task contracts (umowa o dzieło). As of January 1, 2021, a remitter (Polish company) will be obliged to inform Social Insurance Institution (ZUS) of the conclusion of each specific task contract, provided that: the contract […]
Investing in Poland from the level of the Netherlands or through a Dutch holding company is becoming more and more troublesome
First of all, there are significant anti-abusive provisions upcoming in the local Polish and Dutch regulations as of 2021: new business substance requirements for service companies in the Netherlands – minimum EUR 100k of annual wage expenses, office space for the period of 2 years; introduction on WHT on interest and royalties paid from DutchCo […]
Anti-crisis Shield – a bill draft of aid for industries in a difficult situation in the Polish Parliament
On 26 October a bill was submitted to counter the effects of the COVID-19 pandemic crisis in the gastronomy, entertainment, fitness, and retail sectors. The new anti-crisis shield is to cover around 200 000 companies and 372 000 employees. The estimated cost to the state budget is to be over PLN 1.8 billion. The main […]
Polish Minister of Finance explanations on cash register receipts classified as simplified invoices
The possibility of issuing simplified invoices (so-called receipt with TIN) was introduced in 2013 and since then many taxpayers’ doubts have grown around them. Recent changes to regulations and growing doubts as to their application have prompted the Minister of Finance (MF) to issue on 20 October 2020 tax clarifications in this regard. A simplified […]
VAT in the CEE – the most important changes
Selected changes in the VAT ___ Poland JPK_VAT implementation – the entry date 1 October 2020 Before October 2020 the Polish taxpayers had to submit to the tax authority mandatory two filings separately: VAT return and SAF-T file. As of 1 October 2020, the Polish taxpayers are obliged to submit JPK_V7M (monthly VAT reporting) or […]
No CFC for Tax Transparent Entity
This is the end of the 5-year CFC dispute. The Supreme Administrative Court finally confirmed what we have argued for from the beginning: that income derived by a tax transparent partnership should be considered business activity income aid, in consequence, non-passive income on the grounds of the CFC regulations. What was the background of the dispute? Some time ago the tax authorities came to the conclusion that it would be good to cut all the discussions and […]
General Anti-Abusive Regulations (GAAR) in Poland
General Anti-Abusive Regulations (GAAR) were introduced in Poland as of 15 July 2016. However, for the first 3 years, they were scarcely used. This has however changed. In the press publications of 16 October 2020, the Ministry of Finance informs that he has just finished 20 tax proceedings which resulted in PLN 500M of additional taxable […]
BREXIT – Fiscal Representative in Poland – when required?
British company after Brexit will be treated as a non-EU country. British company intending to launch VAT taxed business activity in Poland or willing to prolong the current VAT registration is obliged to appoint a Tax Representative. Does your company require to appoint a Fiscal Representative? Non-Polish entities willing to carry out taxable supplies in […]