- The Supreme Administrative Court ruled that activities performed by special purpose vehicles established by local government units, which are financed solely by public funds and do not aim to make a profit, do not qualify as economic activity and are therefore not subject to VAT.
- This ruling clarifies that if a company’s sole purpose is to execute public tasks without engaging in market competition, it does not need to be analyzed further for VAT exemption criteria under Article 15(6) of the VAT Act.
- Experts view this decision as significant for municipal companies, providing clarity on VAT obligations and emphasizing that the classification of taxpayer status depends on whether an activity is deemed economic in nature, rather than merely the legal form of the entity.
Source Prawo
Latest Posts in "Poland"
- The Ministry of Finance is planning changes in VAT – extension of joint and several liability
- Polish Ministry of Finance releases new KSeF 2.0 Manual
- Ministry of Finance Invites Entrepreneurs to KSeF Training Sessions Starting September
- KSeF and Foreign Branches: Unclear How to Calculate 200 Million PLN Limit
- KSeF Will Also Affect Foreign Contractors of Polish Companies
