We have already written about the FE issue in Poland on our website! (Read the article here). As proof of the existing problem about the FE in Poland, please find the new facts below. In June 2020 one of our foreign clients with the Polish VAT registration has received a negative tax ruling regarding FE […]
Chain transactions in VAT – new rules, old risk
Beginning from 1 July 2020, new regulations regarding the taxation of the so-called chain transactions will come into force in Poland. What are chain transactions? A chain transaction occurs when goods are sold successively by several sellers, but their transport takes place only between the first and last entity in the chain. Correct taxation of […]
First amendments to the tax provisions as of 1 July 2020
On 28 May 2020 Polish Parliament passed a bill containing: the provisions implementing EU regulations, so-called “Quick Fixes” package (hereinafter referred to as “QF”); the CIT system tightening provisions implementing Council Directive (EU) 2017/952 as regards hybrid mismatches with third countries (hereinafter referred to as: “ATAD 2 Directive”); completion of the transposition of Council Directive […]
Change in the VAT regulations related to the simplification in the import of goods
According to the current provisions of the Polish VAT Act, the preferential VAT settlement directly within the VAT returns is available only for some entities – the entrepreneurs which meet the conditions of the simplified procedure and for the authorized traders so-called AEO. On average, several thousand importers use this option on a monthly basis, mainly large domestic and foreign companies, which can meet the conditions for admission to the simplified procedure […]
Changes in PIT, CIT, VAT and Tax Ordinance Act – to make everyone’s life better
On 6 May 2020 the Parliament (the Sejm) adopted a draft bill amending PIT, CIT, VAT Acts, and the Tax Ordinance Act. Among proposed changes are in particular: the possibility of making payments on bank accounts not indicated on the so-called White List and adapting the PIT and the CIT Acts to the Polish Classification […]
Taking into account the issued corrective tax invoices in VAT returns
A new amendment to Act No. 235/2004 Coll. on value-added tax will come into effect as of 1 April 2019. This amendment permits, among others, to take into account issued corrective tax invoices (credit notes) in VAT returns. Within the time limit for the issue of the relevant tax document, the payer shall use appropriate […]
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 […]
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 […]
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 […]