VAT sanctions: Amendments under the Slim VAT 3 package
No more rigid catalogue of sanctions for VAT offences. The tax authorities will be able to reduce the amount of sanctions taking into account the circumstances of the irregularities. But taxpayers who knowingly commit tax fraud will be hit with a sanction of 100% of the underpaid tax or excess input tax claimed.
Taxes and the family foundation
Along with the provisions allowing for establishment of a family foundation, entirely new tax provisions are being introduced, with attractive rules for taxation of asset transfers and foundation activities, but also a slightly too varied patchwork of tax rates.
Court of Justice will assess whether the exemption of rail infrastructure from property tax is state aid
Rail infrastructure and the land on which it is located are exempt from property tax in Poland. Is that unauthorised state aid? The answer from the Court of Justice could have far-reaching consequences.
VAT on NFTs: The position of the EU VAT Committee
How VAT should be charged on trading in NFTs is of interest to taxpayers and tax authorities in various European Union countries, which sometimes take different approaches. On 21 March 2023, the EU VAT Committee published Working Paper no. 1060, entitled “Initial VAT reflections on non-fungible tokens,” touching on a number of issues concerning the VAT treatment of NFTs. As NFT transactions, including high-value ones, become more common, the tax treatment of these tokens and operations involving them, including on VAT grounds, should be fairly assessed, and the working paper may have a significant impact on this assessment.
Withholding tax on sharing software in the cloud?
Modern tech solutions such as the software-as-a-service model, where users don’t have to maintain IT infrastructure on their own hardware, are becoming increasingly popular among taxpayers. But the fee for cloud solutions paid abroad may be subject to withholding tax if it is treated as a fee for use of an industrial device.
Difficulties for the acquirer: Adjustment of input VAT deduction for the merger year
On VAT grounds, a merger may prove challenging for the acquirer if either the acquirer or the target applies proportional input tax deduction in the merger year.
Sale of shares in a real estate company: What about VAT?
The sale of shares in a real estate company is only the beginning, as the seller must face the VAT consequences of the transaction. Is the sale of shares in real estate companies treated differently under VAT than the sale of shares in other companies? Is this correct? And what can be done about it?
Tax proceedings and trust in public authorities
Issuing a permit to demolish a building, then blocking the demolition and demanding payment of tax on the undemolished building, while ignoring a request for an individual interpretation on the matter, hardly fosters citizens’ trust in the public authorities. It is also unlawful.
Will newly listed companies on the Warsaw Stock Exchange benefit from new tax regulations?
The Polish Deal introduces several solutions for Polish capital market participants, including corporate income tax changes for companies preparing to debut on the stock exchange. This amendment came into force on 1 January 2022.
Will a tax exemption attract investors to the Warsaw Stock Exchange?
One of this year’s tax amendments that may affect Polish capital market participants is the income tax exemption for taxpayers investing in IPOs of companies entering the Warsaw Stock Exchange. Under certain conditions, they will be exempt from capital gains tax.
Basic transfer-pricing compliance obligations
Transfer pricing is one of the focal points of taxation in Poland. The arm’s-length principle underlying transfer pricing requires related parties to provide products, services or loans to each other on terms that would have been agreed upon between independent parties. When they follow the arm’s-length principle, taxable profits recorded by each party will not be distorted by their membership in the same capital group. The arm’s-length principle must not only be followed, but also be clearly seen to be followed and this comes at the cost of compliance efforts. In this respect, three issues will be analysed below: basic compliance obligations, selected peculiarities of Polish regulations, and transfer pricing documentation for a group of companies.
Parcel lockers: No building permit required, but subject to real estate tax?
The pandemic has affected the way we shop. More and more frequently, buyers order products (including Christmas gifts) online with delivery to a designated customer service location or a parcel locker, so they don’t have to wait at home in the time slots indicated by the courier. More parcel lockers are appearing in housing estates and on the street. While it is clear that constructing parcel lockers does not require a building permit, are parcel lockers subject to real estate tax?
