How to Account for Late Hotel Reservation Cancellation Fees in VAT and CIT?

• Fees for late cancellation of hotel reservations should not be subject to VAT.
• The company provides hotel services taxed under general VAT rules.
• A customer canceled a reservation too late, resulting in a fee of 324 PLN.
• The company applies general rules for VAT and CIT, with a CIT rate of 19 percent.
• There are no connections between the company and the customer as per VAT law.
• The company must determine how to account for the late cancellation fee under VAT and CIT regulations.

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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