Release of Goods as Result of VAT Fraud: Regional Court Ruling in Poland

• The Regional Administrative Court in Wroclaw issued a judgement on 19 September 2023 regarding a case of VAT fraud.
• A company received two orders for the supply of goods, but after the payment deadline for the first invoice expired, the amount due was not paid.
• It was discovered that a fraudster was posing as the company’s client.
• The company wanted to know if a VAT-taxable delivery of goods occurred in this situation.
• The court ruled that the delivery of goods to a place where they were stolen as a result of fraud is not subject to VAT.
• This is because the transfer of right of owner-like possession did not take place.
• Since the goods were delivered as a result of fraud and were seized by an unidentified entity, no ITC (Input Tax Credit) took place.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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