On April 12, 2022, the Provincial Administrative Court in Poznań issued a judgment in which it ruled that the expenditure in the form of the amount of British VAT resulting from the British declaration for payment to the British tax office should be included in tax deductible costs as an indirect cost within the Polish CIT tax, deductible on a one-off basis in the month it is incurred.
In the opinion of the Provincial Administrative Court, the moment of British VAT settlement should be considered the date of submission of the relevant declaration. The Provincial Administrative Court recalled that Art. 15 sec. 4e of the CIT Act clearly stipulates that the date on which the tax deductible cost is incurred is the date on which the cost was recognized in the accounting books based on the invoice received, or the date on which the cost was recognized on the basis of other evidence in the absence of an invoice.
Source PwC
