Year 2021 was full of tax changes also in Poland, most of which are going to take effect at the start of 2022. For business, then, this year will be the one of implementing the changes and adjusting to the new reality.
However, the quality and pace of the reform have given rise to controversies resulting in a host of Polish cases dealt with by the Court of Justice of the European Union (CJEU) in 2021. The new publication of WTS&SAJA Sp. z o.o. gives an overview of the most important Polish cases and describes how these issues can impact business in Poland.
Decisions in Polish cases
CJEU resolved a number of long-time doubts surrounding the interpretation of extremely important VAT issues. The most important of these are:
- the applicability of reverse charge mechanism in a VAT-neutral manner where the three-month time limit for deduction of input tax has passed (case C-895/19, judgment of 18 March 2021);
- the availability of the right to invoice adjustment during a tax inspection if the taxable person acted in good faith to treat his transaction in accordance with the tax authorities’ approach applicable at the date of the transaction (case C-48/20, judgment of 18 March 2021);
- the ban on automatic imposition of additional VAT (so-called VAT penalty) due to its incompatibility with the principle of proportionality (case C-935/19, judgment of 15 April 2021);
- the availability of reduced 5% VAT on sale of meals if the consumer himself chooses whether to consume the meal away from the premises or on the premises at a restaurant or in a shopping centre using resources provided for the purpose (case C-703/19, judgment of 22 April 2021);
- that there is no need for taxable persons to pay VAT due on purchase of fuel via ICA if the tax has not yet become chargeable as appropriate for transactions of this kind (case C-855/19, judgment of 9 September 2021).
The details of those Polish cases and their impact on business in Poland can be read in the publication.
In case of any questions or doubts regarding the content of the articles, please contact the experts of WTS&SAJA Sp. z o.o. directly, the exclusive representative of WTS Global in Poland.