Poland, Slovakia, the Czech Republic, and Hungary are key CEE countries, attracting investments from all over the world. And although one would expect that it would be Poland – the biggest economy, country, and nation among CEE countries – who will excel, yet it seems that foreign investors prefer rather Slovakian, Czech or Hungarian economy. […]
A subsidiary does not always give rise to a fixed establishment under the VAT regime
On 7 May 2020, the Court of Justice of the European Union (hereinafter referred to as “CJEU”) passed a significant ruling in the Polish case C-547/18 Dong Yang Electronics indicating a direction in determining a fixed establishment (hereinafter referred to as: “FE”) for VAT purposes. The background of the case The background to the request for […]
Anti-Crisis Shield 3.0 – to be continued
The government’s bill on the new aid program as part of anti-crisis regulations (the so-called Anti-Crisis Shield 3.0) is now going to be discussed in the Senate. SOCIAL SECURITY CONTRIBUTIONS Extension of the exemption – individuals conducting business activity and paying social security contributions will be allowed to benefit from social security contributions’ exemption also when […]
Anti-crisis Shield 2.0 – complementary package
The so-called Anti-Crisis Shield 2.0 extending provisions of the earlier Anti-crisis shield (referred to on our blog) entered into force on 18 April 2020. Below we present the most important implemented changes: Refinancing under the so-called downtime The possibility of granting the stoppage benefit – to be granted, the entrepreneur has to show that the […]
Call-of-stock warehouse vs. Fixed Establishment (FE)
In January this year, the European Commission (the EC) issued letters to 12 EU Member States because of a delay in implementing the EU Directive 2018/1910 regarding the „Quick Fixes” (QF) package for VAT purposes. QF should be effective throughout the EU from January 1, 2020, however, have not been implemented into legislation in countries […]
Bad debts relief in VAT
Despite “Anti-Crisis Shield” due to COVID-19, it is worth remembering about the permanent solution in the Polish VAT Act that allows reducing or deferring the VAT liability, so-called “bad debts relief“. The requirements to correct the sales VAT related to the bad debts relief are as follows: The taxpayer may correct the tax base and […]
Financial Shield – how you can benefit
In the next few days, the first applications of large companies for refunding their business activity within the so-called “Financial Shield” are expected. The formal introduction of the program for these beneficiaries still depends on its notification by the European Commission. However, submission of the initial application is already possible – detailed qualification and refunding […]
Check what company documents are required for VAT registration in the CEE!
Among the various VAT registration forms and statements that must be submitted to the tax authorities in a certain country, the entrepreneur applying for VAT number has to also provide the company documents. Below you can easily find the basic documents your firm should collect to be VAT registered in Poland, Czech Republic, Slovakia, and […]
WHT and Polish resident’s foreign establishment
On 24 April 2020, a general interpretation of the Minister of Finance (No. SP4.8223.1.2020) was published regarding the withholding tax (WHT) on payments made by a Polish resident’s foreign establishment to a non-resident. It is intended to provide a remedy for existing doubts and disputes regarding whether in such situations a Polish resident or his […]
TPR-C Form Interactive Version
The Ministry of Finance published the long-awaited interactive version of the TPR-C form. After nearly 150 pages of comments submitted during public consultations, taxpayers were provided with the final version of the document. TPR-C will have to be sent electronically to the Head of the National Revenue Administration for transactions with related entities for the […]