A hotel, which previously operated the restaurant itself, now rents it to an unrelated company. The hotel buys restaurant services from the company, which it then sells to its guests. This resale of purchased restaurant services is subject to VAT.
According to Polish VAT regulations, any provision of services for a fee within the country’s territory is subject to VAT. Therefore, when the hotel purchases restaurant services from an independent company, it must pay VAT on the purchase and then charge its guests VAT on the sale of those services.
The article also discusses the concept of input tax deduction, which allows businesses to deduct the VAT they have paid on their purchases from the VAT they owe on their sales. In this case, the hotel can deduct the VAT it paid on the purchase of restaurant services from the VAT it charged on the sale of those services to its guests.
Additionally, the article mentions the principle of VAT neutrality, which states that the VAT burden should fall only on the final consumer of the goods or services, not on intermediate suppliers or resellers. To ensure VAT neutrality in the case of the hotel purchasing restaurant services, the company selling the services (in this case, Company X) is considered the service recipient and supplier, while the hotel is considered a reseller. Therefore, the hotel must issue a VAT invoice to its guests for the sale of the restaurant services and include the VAT it charged on the invoice in its VAT return.
Overall, the VAT aspects in this scenario are important for the hotel to consider when purchasing and reselling restaurant services to its guests, as failure to properly account for VAT can result in penalties and financial consequences.
Source: podatki.gazetaprawna.pl
