- On November 10, 2023, the Supreme Administrative Court (NSA) issued a significant ruling (I FSK 903/22) regarding tax fraud and the good faith of taxpayers in relation to the right to deduct VAT and apply a 0% rate to intra-Community supplies of goods.
- The case involved a taxpayer conducting business in the textile materials market who purchased high-quality fabrics from a domestic supplier in 2016 and sold them to a foreign contractor using a 0% VAT rate.
- Tax authorities conducted an audit, initiated a tax proceeding, and ultimately questioned the right to deduct the tax from purchase invoices, as well as the sales transactions of the taxpayer, accusing them of participating in a tax fraud scheme.
- The authorities believed that the taxpayer was involved in an organized tax fraud scheme, acting as a “broker” in a chain of transactions with entities acting as “missing taxpayers” and “buffers.”
- The ruling provides valuable insights for taxpayers on how to safely conduct business and avoid VAT fraud traps.
Source: ksiegowosc.infor.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.
