Taxpayers win disputes over 100% VAT penalty

• Taxpayers are winning disputes over 100% VAT sanctions.
• The tax office believes that knowing about tax fraud is the same as “at least being able to know”.
• The tax office loses in court because the law on goods and services tax has changed.
• The recent Hungarian case ruled that the tax authority must prove that the taxpayer actively participated in the fraud or knew or should have known that the acquisition of goods or services used to justify this right was connected to the fraud.
• However, this case was about VAT deduction, not 100% VAT sanctions, which can be imposed in Poland based on the VAT Act.

Source: podatki.gazetaprawna.pl

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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