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VALUE-ADDED TAX (VAT)

Home > Expertise > Value-added tax

VALUE-ADDED TAX (VAT)

The income from the VAT to the Polish state budget amounted in 2020 to 185 mil. PLN and was thereby the biggest source of revenue for the state. At the same time, the yearly losses of the State Treasury due to the VAT fraud amount to several dozen million PLN. Ensuring the size and stability of the state revenues from this tax became priority for the Polish government in the last years, bringing Poland to the forefront of the global combat against the VAT fraud. Introduction of the SAF-T reporting, split payment mechanism or the joint and several liability – these are several from the mechanisms, introduced by the Polish state to reduce the VAT gap. The growing formalization means an increase of the level of risk for every entrepreneur. Failing to fulfil some minor formalities may have very negative impact in case of the tax audit.

VAT is nowadays a big challenge for every entrepreneur. The entrepreneurs must ensure, that their business processes are structured in such a way, that they are compliant with the VAT regulations. The fact, that the Polish state – as the European champion of decreasing the VAT gap – introduces almost every year new, innovative, tools to combat the VAT fraud, does not make this task easier. The entrepreneurs get every year a new set of obligations arising from the newly introduced VAT regulations, which they must integrate into their business processes. What is more, the tax office, acting with a view to maximizing its revenues, carries out the tax audits often in an aggressive manner, withholding the VAT refund for years or determining the additional tax liabilities based on some minor formal mistakes.

We offer our clients a deep level of expertise and a profound experience in the Polish VAT. Our goal is to offer our clients practical, suitable solutions in the area of the VAT.

The income from the VAT to the Polish state budget amounted in 2020 to 185 mil. PLN and was thereby the biggest source of revenue for the state. At the same time, the yearly losses of the State Treasury due to the VAT fraud amount to several dozen million PLN. Ensuring the size and stability of the state revenues from this tax became priority for the Polish government in the last years, bringing Poland to the forefront of the global combat against the VAT fraud. Introduction of the SAF-T reporting, split payment mechanism or the joint and several liability – these are several from the mechanisms, introduced by the Polish state to reduce the VAT gap. The growing formalization means an increase of the level of risk for every entrepreneur. Failing to fulfil some minor formalities may have very negative impact in case of the tax audit.

VAT is nowadays a big challenge for every entrepreneur. The entrepreneurs must ensure, that their business processes are structured in such a way, that they are compliant with the VAT regulations. The fact, that the Polish state – as the European champion of decreasing the VAT gap – introduces almost every year new, innovative, tools to combat the VAT fraud, does not make this task easier. The entrepreneurs get every year a new set of obligations arising from the newly introduced VAT regulations, which they must integrate into their business processes. What is more, the tax office, acting with a view to maximizing its revenues, carries out the tax audits often in an aggressive manner, withholding the VAT refund for years or determining the additional tax liabilities based on some minor formal mistakes.

We offer our clients a deep level of expertise and a profound experience in the Polish VAT. Our goal is to offer our clients practical, suitable solutions in the area of the VAT.

How can we help you?

In the light of the CJEU ruling as of 18th March 2021 (C-895/19), the regulations of the Polish legislator, imposing the obligation to settle the VAT from the intra-community acquisitions in the “divided form” in case of retroactive reporting of the intra-community acquisitions in the VAT returns, violate the principle of VAT neutrality and proportionality and are therefore in breach of the regulations of the VAT directive. The CJEU verdict opens the possibility to recover the interest paid on the intra-community acquisitions.

We represent our clients in the proceedings aimed at recovering of the interest on the intra-community acquisitions, declared in the ‘divided form’. As part of our services:

  • We determine the amount of interest to which the Client is entitled.
  • We represent the Client in the refund proceedings bevor the tax authorities (and, if need be, before the administrative courts).

We support our clients in the issues related to the international turnover, concerning among others the following:

  • the accuracy of documenting and reporting of the intra-community deliveries and exports
  • vhain transactions, triangular transactions and application of the simplified procedure
  • existence of the fixed establishment in Poland
  • determination of place of supply of services in case of services rendered to or by the foreign entrepreneurs.

As part of our services, we offer the following::

  • assessment and advisory regarding the consequences of the international transactions in VAT
  • verification of the gathered documentation and support by implementing/ optimalisation of processes of the gathering of relevant documentation.
  • representation and assistance for our clients in the tax audits, also before the administrative courts

We support the Online Sellers by the fulfilment of all the tax obligations in Poland (VAT registration in Poland, monthly or quarterly VAT filings, Intrastat filings).

We have a profound experience with VAT advisory for the Online Sellers and have represented our clients many times in the tax audits in Poland. We understand the specific of the e-commerce trade via Amazon, e-bay and other electronic marketplaces and we have a deep expertise in VAT regulations concerning the e-commerce

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