- CJEU delivered opinion on split payment mechanism and transfer of funds in VAT account by insolvency administrator
- In Poland, split payment mechanism splits payment into consideration and VAT, with VAT held in blocked bank account
- Conflict arose with insolvency law as tax arrears fall into second priority for repayment
- Tax authorities refuse to transfer VAT account funds to receivers representing companies in insolvency
- Domestic rulings have favored tax authorities, stating insolvency law does not exclude VAT Act provisions
- Provincial Administrative Court has held that tax regulations should not favor State Treasury over other creditors
- Receivers applied to transfer funds from VAT account to estate of company in insolvency, but request was refused due to tax arrears
Source: ey.com
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.
Latest Posts in "European Union"
- CJEU AG: Separate Legal Entities Must Act Independently to Be Separate VAT Taxable Persons
- CJEU Rules on VAT Deduction Denial and Taxation of VAT Refund Services in Hungary
- EU Advances Customs Reform with Central Authority and Unified Data Hub System
- Essential Steps for Multi-Country EU VAT Registration: Triggers, Documentation, and Compliance Tips
- ECJ VAT C-544/24 (Nekilnojamojo turto valdymas) – AG Opinion – National law’s fixed late payment interest aligns with EU law
