On December 23rd, 2019 the Minister of Finance has published tax explanations. The explanations certain to the rules of using data contained in the VAT List created on September 1st, 2019, hereinafter also referred to as the “White List”. Below

Instrument to fight tax evasion. The Act from August 9, 2019 amending the Act on Value Added Tax and  Other Acts (hereinafter referred to as the „Amendment Act”) brought a number of novelties. One of them is the introduction of

On August 23rd, 2019, the Parliament received a bill on the settlement of disputes regarding double taxation and the conclusion of price agreements (No. 3788). The proposed act, in addition to new regulations in the field of the abovementioned issues,

The main goal of the EU reform called Quick fixes is harmonization and unification of popular solutions that have been used for a long time in many EU countries, including Poland. To date, the rules regarding the Call off stock

If you run a company in Poland that provides IT services and as part of subcontracting you use the support of IT specialists from the other EU member states or third countries – you should take a look at this

Monitoring of the transport of goods (called the “transport package” or SENT system) has been in force since April 2017 (over two years), and has already seen many updates. The Ministry of Finance regularly monitors more and more “sensitive goods.”

In 2018 we informed about plans for the introduction of the new SAF-T VAT structure, which will replace the VAT-7/VAT-7K returns and eliminate the necessity of submission of VAT-27 return. The idea met with popular enthusiasm of the taxpayers. Each

Taxpayers are to pay taxes on individual bank accounts as of 2020 Polish tax law is subject to extensive changes each year. Bearing in mind recently published draft laws, 2020 will also bring further revolutions for VAT taxpayers – both

In accordance with the draft amendments to the VAT Act, as of 1 January 2020, changes implementing the directive 2018/1910 will be introduced in regards to the delivery of goods under the so-called chain transactions. As a result of the

If the activities of foreign companies in Poland come down to the purchase of goods, their storage and processing, and after carrying out the work on them, the goods are exported to the territory of another country, such services do

In today’s article we would like to focus in details on the most important changes affecting VAT regime in Czech Republic. Vouchers As the EU VAT Directive regulating vouchers was adopted in June 2018 all Member States must seek to

Tax point in construction sector in the light of recent CJEU’s judgement The rule for determining a tax point in case of construction and installation services is clearly specified by the Polish VAT regulations as the moment of issuing an

On 1st May 2019, the CELINA import notification system was ultimately shut down. As of this day, all import declarations are solely handled by the AIS/IMPORT (Automatic Import System). The AIS/IMPORT system was built on the basis of the EU

Broadly understood e-commerce industry may suffer from consequences of hard Brexit. The exit of Great Britain from the EU without an agreement may affect online operating traders. This stems from the special taxation rules for these types of  transactions. As

Brexit vs VAT Brexit – what’s next? For a long time the issue of Great Britain leaving European Union remains one of the hot topics on the international arena. The ‘divorce’ is scheduled for the end of March 2019. However,

Mandatory split payment mechanism. On 23rd January 2019 the European Commission published draft decision on authorising Poland to introduce a special measure derogating from Art. 226 of Directive 2006/112 / EC on the common system of value added tax. The

The Ministry of Finance presented further proposals for amendments regarding VAT. These pertain to the so-called White List aiming to help taxpayers verify their contractors. The White List is free, official, online electronic register of active VAT taxpayers. Fundamentally, the

The Ministry of Finance has recently published the draft amending the VAT Act that implements, among others, the updated version of JPK_VAT (Polish Standard Audit File for VAT) structure (previously communicated as JPK_VDEK) that might replace VAT returns as of

Taking a look at the latest project of changes in the Polish VAT Act with planned implementation of Directive  2017/2544 coming into force from 2019. What is the objective? Firstly, it is a step forward in the unification process of

JPK_VDEK is a working title of the new structure of the standard audit file which the Ministry of Finance is currently working on. The new file is supposed to completely replace the current JPK_VAT file and is going to include

Starting from 2019, the Ministry of Finance in Poland plans to introduce a new classification of VAT rates. This will be related to the change in the way the goods and services are identified for the VAT purposes in Poland

Od 1. ledna 2019 vstoupí v platnost nová pravidla pro uplatňování DPH, proto bychom vám chtěli v tomto článku přiblížit ty nejvýznamnější změny. Poukázky/vouchery Tím, že byla v červnu 2018 přijata nová směrnice EU pro oblast DPH, všechny členské státy musí do svého

As of 1st January 2019 the new rules of Czech VAT Act will enter into force. Below we explain the most important provisions in details. Vouchers As the EU VAT Directive regulating vouchers was adopted in June 2018 all Member

On 2nd October 2018, the ECOFIN Council adopted a draft amendment to Directive 2006/112 / EC. The proposed changes are intended to enable EU Member States to decide on the reduction of VAT rates applicable to electronic publications (books, newspapers

Távolsági értékesítés – Magyarország A digitalizáció az online értékesítést egyre inkább előmozdítja, ugyanakkor a cégeknek számos adminisztratív kihívással kell szembenézniük ezen a téren. A nemzetközi értékesítés soha nem volt egyszerű, kezdve a külföldi vásárlói kultúra megismerésétől egészen a logisztikai és

Distance selling in Hungary The digitalization moves towards online selling and when it comes to the expansion of the company boundaries it has to face several legislative restrictions to comply with. International sales has never been easy, starting from capturing

Your company intends to apply for a VAT refund in Poland in the basic period? Then you must know that submitting correct VAT return for July may be ‘a bit’ more problematic than you hope. At the moment submitting VAT

Employees’ Capital Pension Schemes (ECPS) – revised bill has been referred by Ministry of Finance for public consultation and inter-ministerial reconciliation. The core premise has not changed – ECPS will rely on conjoint input of the employer, employee and state

Pursuant to the Act of 27 October 2017 Amending the Acts on Personal Income Tax, Corporate Income Tax and the Act on Flat-Rate Income Tax on Selected Incomes Earned by Individuals, the document was compounded by means of adding Article

25 April 2018 saw the publication of a draft bill conferring tax preferences on companies investing in rental properties (a Polish equivalent of real estate investment trusts) and their shareholders. The bill governs matters related to companies investing in real

Pursuant to the Act of 27 October 2017, the legislators introduced new regulations on the so called minimum income tax. The regulations have subsequently been compounded by another act and a set of self-amendments to cohere the rules applicable since

3 April 2018 saw the publication of a general ruling on transfer pricing dated 26 March 2018. The publication marked one of the latest steps in a series of rulings pertaining to regulations effective as of 1 January 2017. The

On 3 April 2018 the Minister of Finance published a general ruling dated 28 March 2018 on the obligation of preparing, reviewing and updating tax documentation. In particular, the ruling applies to financial transactions such as loans, credits, the issuance

Thanks to the efforts undertaken by our Tax Advisory Department, on March 14, 2018, we managed to obtain two favourable individual VAT rulings. The rulings (0114-KDIP1-2.4012.701.2017.3.RD, 0114-KDIP1-2.4012.140.2018.1.RD, 0114-KDIP1-2.4012.46.2018.2.RD) at issue pertained to two questions: Whether a situation in which a

The Ministry has provided a rationale behind changes to the sections of the Tax Ordinance Act related to issuing individual tax rulings. The amendments are to counter the abuse of tax rulings perpetrated by taxpayers operating within a group of

On 27 February 2018 the website of the Government Legislation Centre featured a Draft Bill Amending the VAT Act and Certain Other Acts dated 13 February 2018. The latest amendments are to serve as the next step taken towards closing

An individual tax ruling of the Head of the National Revenue Information confirms the Ministry’s position on the obligation to prepare tax documentation in situation when a taxpayer takes up shares issued upon creating a subsidiary in exchange for a

Since 1 January 2017 the obligation to prepare transfer pricing documentation has been subject to verification pursuant to the new phrasing of article 9a of the Corporate Income Tax Act. However, upon publishing the new regulations, some controversies concerning their

On 1 January 2018 article 12, paragraph 1, subparagraph 7 of the CIT Act was amended. Article 12, paragraph 1, subparagraph 7 of the CIT Act (applicable until 31 December 2017) Article 12, paragraph 1, subparagraph 7 of the CIT

On 15 March 2018 The Ordinance of the Minister of Finance of 14 March 2018 on the Extension of Deadlines for the Performance of Certain Duties Related to Transfer Pricing Documentation became effective (Journal of Laws, item 555). The changes

Innovation Box is a new initiative pursued by the Ministry of Business and Technology with the aim of boosting Polish entrepreneurship. Similar solutions have already been adopted by some of the nations associated under the aegis of the Organization for

On 13 January 2018 the Act of 24 November 2017 Amending Certain Acts to Combat the Use of the Financial Sector to Commit Treasury Fraud became effective. The Act, also known as the STIR (the Computer System of the Clearing

On 1 January 2018 the Polish tax system was compounded by a new income tax structure, commonly referred to as the minimum tax on commercial properties or the shopping mall tax, pursuant to which the revenue on the ownership of

Considering the fact that tax laws often fail to keep pace with changing economies, OECD has pursued an initiative whose aim is to eliminate base erosion and profit shifting. As a result, a list of fifteen action points, commonly referred

On 29 December 2017 the Head of the National Revenue Information (hereinafter: NRI) issued an individual ruling on payments made under a guarantee for a property owner to generate a predetermined amount of operating income (0114-KDIP1-3.4012.372.2017.2.MT). In the ruling the

On 18 December 2017 the Supreme Administrative Court passed an important judgement which revoked the first instance ruling that was favorable to the tax authorities (Case File no. I FSK 352/16). A written statement of reasons for the judgment is

Another amended draft bill on supporting new investments, supplemented with draft implementing regulations confirms the general direction in which the changes pursued by the Ministry of Finance and Economy are going. Despite a considerable delay in legislative works, the “package”

Taxpayers whose revenue or costs have exceeded the equivalent of EUR10m will be obliged to submit a simplified statement of transactions with related entities (CIT-TP) along with the CIT-8 tax return. A template of such statement supplements the ordinance of

Hungary is more and more regarded by investors not simply as an ideal production location, but also as a remarkable “advanced manufacturing & innovation centre” of Europe. For businesses who are open or plan to invest in Hungary, it might

After taking into consideration the incoming comments and suggestions following the call for public debate during the summer, the Hungarian Finance Minister submitted on 24th October to the Parliament for debate the two bills related to the rules and admistration

The EC sent a letter of formal notice to Hungary in October, because according to the EC, the Hungarian EKÁER system infringes the EU VAT Directive as it provides for certain reporting and other administrative requirements primarily for legal entities

The justification for the proposal to amend the VAT Act indicates that the aim of repealing Art. 43(13)–(14) is to adapt the current VAT regulations to the VAT Directive in response to the judgment of the Court of Justice of

As the current provisions of the VAT Directive do not ensure consistency in the tax classification of transactions involving vouchers, causing a divergence of interpretation across the EU, on 27 June 2016 the Council of the European Union adopted an

A definition of a structural object (obiekt budowlany) entered into force on 28 June 2015. The new law generates justified concern among taxpayers in respect of taxation of installations (which are not defined in the tax law). Now a structural

The media frequently cite economic experts on the need to increase innovation in the Polish economy in the coming years. One way this objective may be achieved is by amending tax laws (corporate income tax and personal income tax). On

In the course of affairs, businesses are sometimes required to pay contractual damages or penalties. This may arise from a range of different situations, such as improper performance, failure to perform, or actions not directly connected to fulfilment of contractual

Under new regulations (Art. 193a of the Tax Ordinance), if taxpayers maintain their books by computer, they will be required to provide the tax authorities with all or part of their accounting books and records in a unified format known as

Starting 1 January 2016, a new regulation applies on deduction of VAT in the case of purchases by taxpayers related to both business operations and operations outside the scope of VAT, particularly when the purchases cannot be precisely allocated to a

On 1 June 2005 the Polish parliament introduced bad debt relief, enabling VAT payers to decrease output VAT in case of overdue receivables. Since 2013, the regulation has remained almost unchanged. The prohibition against taking bad debt relief when the

A bill amending the Act on Local Taxes and Fees was signed into law by the President of Poland on 25 July 2015. The new regulations regarding real estate tax will enter into force on 1 January 2016. The most important changes

Tadeusz Robinski, Partner & CEO KR Group, ContactOnLine (British Polish Chamber of Commerce), number 18/2015

In a judgment of 25 March 2015 (Case II FSK 955/14), the Supreme Administrative Court held that post-transaction discounts received by a taxpayer should be included in the accounting period in which the company received the discount. That case related

Frequently, companies that hold receivables under loans they have granted to subsidiaries decide to convert them into shares. In such situations taxpayers may be uncertain whether this contribution to the company against new shares constitutes a contribution in cash or

In this issue: Employees’ Capital Pension Schemes (ECPS) soon to be universal. Revised bill has been referred by Ministry of Finance for public consulation and inter-ministerial reconciliation. Changes in minimum tax on commercial real estate    Amendments to the act

In this edition: Revolutionary Changes to Income Tax on Values of Commercial Properties. The legislators introduced new regulations on the so called minimum income tax. The regulations have subsequently been compounded by another act and a set of self-amendments to

W numerze: Group rulings on tax law. The Ministry has provided a rationale behind changes to the sections of the Tax Ordinance Act related to issuing individual tax rulings. The amendments are to counter the abuse of tax rulings perpetrated

In this edition: Deadlines for the preparation of transfer pricing documentation deferred. On 15 March The Ordinance of the Minister of Finance of 14 March 2018 on the Extension of Deadlines for the Performance of Certain Duties Related to Transfer

In this edition: Innovation box. Innovation Box is a new initiative pursued by the Ministry of Business and Technology with the aim of boosting Polish entrepreneurship. Similar solutions have already been adopted by some of the nations associated under the

In this edition: Minimum wage. Tax-free exclusion. Change in limit of revenue-earning costs for creatives. Limits on tax exemptions. Income from shares received in incentive programmes. Download   MINIMUM WAGE The government raised the minimum monthly wage from PLN 2,000

In this edition: CIT-TP. Taxpayers whose revenue or costs have exceeded the equivalent of EUR10m will be obliged to submit a simplified statement of transactions with related entities (CIT-TP) along with the CIT-8 tax return. Authorities to properly prove the

In this edition: Supreme Administrative Court confirms tax authorities’ position on fixed establishment for VAT purposes. Costs of Advisory services to be excluded. First Occupation – VAT Act vs. VAT Directive. Supreme Administrative Court soon to decide on relief for

In this edition: Reverse charge and the right to deduct VAT. VAT Act vs. VAT Directive. Purchaser’s right to deduct input tax arising from a VAT invoice issued by an inactive entity. Tax on the value of shares acquired in

In this edition: Return to a lower retirement age. One account at ZUS (Social Insurance Institution). Download   RETURN TO A LOWER RETIREMENT AGE The act amending the retirement age in Poland entered into force on 1.10.2017, restoring the age

In this edition: VAT on management contracts? Costs of intangible services and licensing fees to be limited from 2018. Support for new investments. New rules on thin capitalization from 2018. R&D centers to take new form. Download   VAT ON

In this edition: What does split payment mean for taxpayers? Transport package to include plant oils. New tax likely to be effective from January 2018. CBC-P – new obligation for CIT payers. Download   WHAT DOES SPLIT PAYMENT MEAN FOR

In this edition: Transfer pricing – new interpretative questions on the obligation to produce transfer pricing documentation. Changes in accounting for R&D expenses. First Occupation – another risk for investors? Certificate of residence – not always on paper. Obligatory “Cégkapu”

In this edition: Proposed amendments to CIT Act. Favourable changes in amortization. Retail tax violates EU law. General interpretation of Minster of Finance on services auxiliary to financial services. Download   PROPOSED AMENDMENTS TO CIT ACT A proposal to amend

In this edition: Changes from 1 June 2017 in the Administrative Court Procedure Law. Playing for time? Settling losses from prior years. Poland signs the Multilateral Instrument. New forms for transactions between related entities. New legislation in Hungary relating to

In this edition: Amendments affecting pregnant women from 1 May 2017. Amendments concerning temporary employees starting 1 June 2017. Amendments in employing of foreigners. Download   AMENDMENTS AFFECTING PREGNANT WOMEN FROM 1 MAY 2017 Work at computers has been treated

In this edition: Proposed VAT amendment — split payment. New reporting obligations — SAF-T for bank statements. Income tax consequences of transferring energy infrastructure. When does the VAT obligation arise for construction services? Download   PPROPOSED VAT AMENDMENT — SPLIT

In this edition: Re-invoicing for construction services. Walls and tax classification of structures. Fit-out works and income tax. Relief for bad debts—Polish VAT Act violates EU VAT Directive. Download   RE-INVOICING FOR CONSTRUCTION SERVICES The extensive specialization in today’s economy

In this edition: Costs for internally generated fixed assets are strictly correlated with the project. When is a manager working under a managerial contract a VAT payer? Sham invoices. VAT registration issues. Download   COSTS FOR INTERNALLY GENERATED FIXED ASSETS

In this edition: New SAF-T structures – what about corrections for July-December 2016? Construction works – first doubts. R&D tax relief. Download   NEW SAF-T STRUCTURES – WHAT ABOUT CORRECTIONS FOR JULY-DECEMBER 2016? Starting from settlements for January 2017, small

In this edition: SAF-T: circus of uncertainty continues. Two dates of acquisition of the same property and income tax obligation on disposal. Recent tax rulings. Download   SAF – CONTINUATION OF THE CAROUSEL UNCERTAINTY The Polish Ministry of Finance has

In this edition: The end of partial work certificates. Internal company regulations. Social fund. Appeal to a court. Download   THE END OF PARTIAL WORK CERTIFICATES Employers are released from the duty of preparation of partial work certificates. An employee

In this edition: Intragroup loans may impact VAT apportionment. Expenses paid outside of bank account are to be excluded from tax-deductible costs. Extension of VAT refund deadline to verify counterparties is not always allowed. RECENT TAX RULINGS: German company may

In this edition: Ministry of Finance announces which costs of business trips can be deductible. Sale of debts as a form of tax optimization. Depreciation of building partially leased free of charge. RECENT TAX RULINGS: An imprecise invoice does not

In this edition: End of the “first day of work syndrome”. Minimum hourly rate in civil contracts from 1 January 2017. Same minimum wage for new hires. Changes in employee secondment regulations. Changes in the State Fund for Rehabilitation of

In this edition: Cash pooling agreement should be treated as loan agreement – the tax consequences. Another judgments regarding obligation to withholding tax. The date of signature decides, not the date when postman comes. RECENT TAX RULINGS: Loaner car should

In this edition: The VAT rate for prepared meals – a general tax ruling of the Minister of Finance dated 24 June 2016., [ref. PT1.050.3.2016.156]. European Council introduces consolidated rules regarding taxation of vouchers. Tax relief for research and development.

In this edition: Payment conducted in the form of setoff agreement is not considered as “payment” entitling for Vat refund in 25 days. Installations as the object of real estate taxation. Taxes and Friday 13th. RECENT TAX RULINGS: CJEU will

In this edition: No VAT preference for built-in home appliances with turnkey apartment. Early termination of contract at the customer’s request is a service for VAT purposes. Minister of Finance’s general ruling on the tax point for construction and construction/installation

In this edition: No personal income tax on reimbursement for use of private car for business trips. VAT received by shareholder transferring assets in kind is not taxable income. Limited partnership may be treated as a company. RECENT TAX RULINGS.