- Case Overview: The case involved determining whether the entire remuneration for services provided by one member of a VAT group to another, after joining the VAT group, is subject to VAT. The company, along with another entity (Entity A), formed a VAT group on June 1, 2023, and provided courier services to Entity A.
- Company’s Argument: The company argued that the entire remuneration for services provided from July 1, 2022, to June 30, 2023, should not be subject to VAT, as the tax obligation arose after the establishment of the VAT group. They believed the services should be documented with an accounting note, not a VAT invoice, based on Article 8c(1) of the VAT Act.
- National Tax Information’s Position: The Director of the National Tax Information Service disagreed, stating that services provided before the VAT group’s establishment should be taxed under general principles and documented with a VAT invoice. Services provided after June 1, 2023, should not be subject to VAT and documented with an accounting note.
- Provincial Administrative Court Ruling: The Provincial Administrative Court in Warsaw upheld the tax authority’s decision, emphasizing that the decisive factor is the moment of the transaction, not when the tax obligation arises. The court ruled that only transactions carried out after the VAT group’s registration are not subject to VAT.
- Implications for VAT: The ruling highlights that the establishment of a VAT group changes the taxable status of companies, affecting VAT obligations. Transactions before the VAT group’s formation are taxable, while those after are not. Entities planning to operate within a VAT group should consider this ruling’s impact on their settlements before and after joining the group.
Source: mddp.pl
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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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