- The taxpayer involved in retail and wholesale sales requested a tax law interpretation regarding VAT on September 3, 2024.
- The taxpayer sells goods to travelers, mainly from Ukraine, under the “TAX FREE” system.
- Due to unawareness of new regulations effective January 1, 2022, the taxpayer continued cash refunds to persons authorized by travelers.
- The taxpayer applied a 0% VAT rate to sales, even though refunds were given to someone other than the purchasing traveler.
- After identifying the issue, the taxpayer corrected VAT declarations and paid the tax arrears with interest.
- Since August 2024, the taxpayer has been refunding VAT directly to travelers, who confirm receipt with a signature and date.
- The taxpayer questioned if they could apply a 0% VAT rate again and if the traveler’s name in the Tax Free system would be an issue.
- The Director of KIS deemed the taxpayer’s position on question 1 incorrect and question 2 irrelevant.
- The Director stated the taxpayer cannot apply a 0% VAT rate since the refund was made to someone other than the traveler.
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.
