- The Wroclaw Provincial Administrative Court issued a significant ruling on the right to deduct VAT for accommodation services purchased by taxpayers
- Until the end of 2020, taxpayers could not deduct VAT from accommodation services whether they were resold or not
- Legislation changes in the SLIM VAT package now allow VAT deduction when these services are purchased for resale
- The case involved a company that bought accommodation services from external providers and resold them to employees of client companies
- The dispute centered on the right to deduct VAT when the final resale of the accommodation services did not occur due to reasons beyond the company’s control
- The Director of National Fiscal Information denied the right to deduct VAT, citing that the services, when not resold, do not qualify for VAT deduction as they become merely a cost element in accommodation management services
- The court disagreed with the tax authority’s interpretation, highlighting that the intent to resell at the time of purchase is crucial, not the actual resale
- The court referenced EU Court of Justice rulings that support maintaining VAT deduction rights even if the purchased services or goods are not used in taxable transactions due to uncontrollable circumstances
- This ruling could significantly impact tax practices, especially for businesses in the tourism and hotel industries
Source: crido.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.
