VAT rate ambiguities interpreted in taxpayers’ favor

The Supreme Administrative Court on 31 January 2023 held (case files I FSK 582/22, I FSK 129-131/22, I FSK 427/22, I FSK 506/22 and I FSK 1282/22) that in evaluating whether certain agents qualify for the reduced VAT rate applicable to fertilizer under the new VAT matrix, it is inadmissible to refer to the definition of fertilizers provided by the relevant regulations, but it is admissible to rely on external systemic interpretation (i.e., other provisions) to the extent that the resulting interpretation is not detrimental to taxpayers.

Source: KPMG

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