The taxpayer raises the risk of his business, including the risk related to the volatility of currency exchange rates, the Regional Administrative Court in Warsaw said in a case concerning the possibility of selling the subject of a currency lease agreement at a price lower than the market price in a situation where the sum of receivables under the agreement – after converting it into zlotys – does not correspond to the initial value of the subject of the agreement. In the Court’s opinion, the books are kept in Polish zlotys and only the entries made in this currency are relevant for tax purposes.
The draft amendment to the VAT law published on March 15, 2023 confirms that the deadline for the introduction of obligatory e-invoicing will be postponed to July 1, 2024. It was also decided to take into account some of the demands of, among others, entrepreneurs, accountants and the IT sector, including the application of sanctions, as well as the possibility of issuing invoices before making a supply or providing a service.
In a recent judgment, the Supreme Administrative Court (SAC) again ruled that the restrictions provided for debt financing costs do not apply to operating leases. The second analogous ruling in this case demonstrates the formation of a line of jurisprudence favorable to lessees, which may already be the basis for creating tax policy on this issue. The ruling may put leasing companies at a disadvantage, for whom the SAC’s interpretation entails a greater risk of excess debt financing costs.
The so-called return relief, which has been in place since the beginning of 2022, can be used not only by Poles returning to the country, but also by foreigners transferring tax residence to Poland. Although there is no shortage of conditions to be met in order to apply the preference, assuming that the maximum amount allowed is used, income of up to more than PLN 340,000 can be exempted. However, due to the draconian penalties that await taxpayers who make a mistake about the right to the relief, extreme caution should be exercised when using it.
The new withholding tax rules, which effectively has come into force with the “Polish Deal”, have made tax settlement drastically more difficult for remitters. One of the biggest challenges is determining whether – and possibly how – tax should be withheld in the case of dividend payments to foreign parent companies. Unfortunately, a recent ruling by the Supreme Administrative Court (SAC) only widens fuss in this regard.
The development of remote work and the increasing mobility of workers, phenomena that accelerated during and after the pandemic period, have resulted in an increasing number of taxpayers facing obligations related to the settlement of income earned abroad (as well as the settlement of income earned in Poland by persons from abroad). Key in this context is, first of all, the correct determination of the so-called tax residency and the choice of the method of avoiding double taxation.
Soon, another step towards the development of green construction in Poland will be made. This will happen due to the new regulation of the Minister of Development and Technology, the draft of which provides, among others, for changes in the methods of determining the energy performance of buildings. The growing importance of this issue is not only the result of changes in respective regulations, but also of rising energy prices and persistently high inflation.
We have written many times about disputes with the tax authorities regarding the possibility of using the bad debt relief and adjusting the tax base by the amount of receivables that have not been paid by debtors when more than two years have passed since the issuance of the invoice. To date, provincial administrative courts [WSA] have consistently agreed with taxpayers. This time, however, the Supreme Administrative Court also agreed with the taxpayer – represented by Gekko Taxens – which is an important step for the formation of a uniform jurisprudence practice in this regard.
The regulations implementing the so-called Omnibus Directive and the Goods Directive came into force on 1 January 2023. They mostly apply to consumer sales – both distance and in person , but in some cases it involves sole traders. The new rules certainly empower buyers’ position and make it necessary for traders to analyse their existing sales processes and make the necessary modifications.