- The recent amendment to the State Labour Inspection Act in Poland increases scrutiny on B2B contracts reclassified as employment contracts, with a focus not only on PIT and social security but also on VAT implications.
- Tax authorities will assess whether activities under B2B contracts qualify as independent economic activity for VAT purposes, based on criteria such as use of company infrastructure, economic risk, and liability.
- Activities under employment contracts or similar relationships are not considered independent economic activity for VAT.
- Proper VAT settlement in B2B relationships assumes both parties act as entrepreneurs, with invoices issued, VAT accounted for, and deductions made accordingly.
- The article emphasizes the importance of considering VAT risks, not just PIT and ZUS, when B2B contracts are reclassified.
Source: mddp.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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