In its judgment of 29 February 2024[1], the CJEU ruled that Member States may impose time limits on a creditor’s application for bad debt relief in cases of debtor default. Additionally, if the tax authority fails to reimburse the VAT amount claimed under bad debt relief within a reasonable time, the creditor is entitled to…
Short-term rental of real estate via online platforms is becoming an increasingly popular way of earning income due to the possibility of easily reaching potential tenants. While contracting is becoming easier this is not always the case when accounting for taxes on this. In this context, it should be noted that from 2023 onwards, rental…
The European Union is about to take another major step towards reducing its impact on global deforestation and forest degradation. The goal, of course, is commendable, however, its consequences will be felt by importers and exporters of products such as palm oil, soy, timber, cocoa, coffee, cattle, and rubber. What will the key obligations for…
The deadline for submitting the CBC notification (CBC-P) for 2023 to the Head of KAS is coming soon – 31 March 2024 (for all entities whose financial year matches the calendar year). This obligation covers entities belonging to capital groups that are subject to the CBC-R. Who? The obligation applies to entities (which are not…
The ESG taxonomy is crucial for ESG reporting as it focuses on technical criteria that must be met for an entity’s activity to be considered environmentally sustainable. Taxonomic disclosures are based on three key performance indicators (KPIs), i.e., CapEx, OpEx, and turnover. The results for each indicator must be presented separately, showing the percentage share…
By judgment of February 2nd, 2023, ref. I FSK 1474/20, the Supreme Administrative Court (NSA) denied the taxpayer the right to deduct VAT on expenses for the use of an electric bus by its social partner (Caritas), even though they were essentially part of activities related to corporate social responsibility (CSR). Corporate social responsibility (CSR)…
Why is it important to accurately determine the functional profile? The functional profile should be understood primarily as the role of an entity in a transaction. It depends on its business activity in the market or in the transaction (e.g. manufacturer, distributor) and its level of involvement in the transaction in terms of functions performed,…
The CJEU will settle on the compliance of polish law on management board members liability for tax arrears with EU law. By decisions of 25 January 2024 (case number I SA/Wr 4/23) and 31 January 2024 (case number I SA/Wr 966/22), the Provincial Administrative Court in Wrocław submitted four questions to the CJEU for a…
Recently, intangible services have been one of the key areas reviewed during tax audits. As statistics made available to us by the Ministry of Finance show, service transactions account for almost 30% of all transactions reported by taxpayers in 2020-2021 in the TPR form, of which as much as 10% are intangible services. Intangible services…
The topic of providing accommodation free of personal income tax (PIT) has raised many controversies for several years due to the lack of a consistent approach in tax rulings. In a recent tax ruling issued on 10 November 2023 (ref. 0114-KDIP3-2.4011.598.2023.5.MN), the Director of the National Tax Information (DKIS) ruled that a company offering free…