- VAT Implications for Customer Promotions: Companies must assess whether gifts, bonuses, or promotional items provided to customers are subject to VAT and if input tax on their purchase can be deducted. The VAT Act specifies conditions under which such transfers may incur tax obligations, despite appearing as non-taxable gestures.
- Conditions for VAT Exemption: Gifts of small value (up to PLN 20) are exempt from VAT, while gifts valued between PLN 20.01 and PLN 100 require proper recipient records to qualify for exemption. Gifts exceeding PLN 100 are subject to VAT, and the tax base is determined by the purchase price or production cost.
- Record-Keeping Requirements: Taxpayers are encouraged to maintain clear records of recipients to identify who received gifts, including details like the date, type of gift, and recipient information. This documentation is crucial for ensuring compliance and justifying VAT treatment under the law.
Source Prawo
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