In the judgment of 4 May 2023 in Case C-127/22 ‘Balgarska telekomunikatsionna kompania’ EAD [hereinafter: Company] v Direktor na Direktsia ‘Obzhalvane i danachno-osiguritelna praktika’ – Sofia [hereinafter: tax authority], the CJEU ruled on the obligations of taxpayers to make adjustments to input tax in relation to the acquisition of goods when those goods are not…
Magdalena Marciniak and Marta Klepacz of MDDP lay out the challenges and complexities of attempting group analysis in Poland, and outline the approach of the domestic tax authorities. Benchmarking studies are a well-known topic in most tax jurisdictions. Just like anything else in life, there is no common understanding of how it should ultimately look.…
An increasing number of countries are introducing safe harbour mechanisms. This is a significant convenience for taxpayers in settlements with related parties. Among the world’s largest economies, these regulations are in place in the US, India, South Korea, Russia, Australia, Spain, Mexico, Austria or the Netherlands. Most jurisdictions have chosen to adopt safe harbour solutions…
The European Parliament and the EU Council have approved the draft regulation on the CBAM (Carbon Border Adjustment Mechanism), the issue that have popped out on our blog several times. Pursuant to this draft, the first obligations related to CBAM will apply from 1 October 2023. CBAM aims to minimize the risk related to the…
It is a truth commonly acknowledged that related-party settlements have been scrutinized by tax authorities for several years. In 2022, more than 500 transfer pricing controls were taking place: 370 were completed and 242 were pending. In 2022 alone, the amount of additionally estimated income exceeded PLN 1 billion (almost PLN 220m more than in…
Justyna Bauta-Szostak and Bartosz Głowacki of MDDP report on the introduction of family foundations in Poland, and how they will be taxed. On January 26 2023, the lower house of the Polish parliament, the Sejm, passed the Family Foundation Act, which will enter into force in May 2023. The purpose of a family foundation, which…
Pursuant to today’s judgment of the CJEU in case C-677/21 Fluvius Antwerpen, unlawful consumption of electricity constitutes a supply of goods for consideration subject to VAT, and a distribution network operator (DSO) charging a fee of compensation on this account acts as a taxable person. In the aforementioned judgment, the CJEU stated that, in its…
Cost optimization-oriented payment management as a controlled transaction Payment management to optimize costs of the payment settlement process using the PoB (payments on behalf) model is a controlled transaction – as stated by the District Administrative Court in Warsaw in the judgment of 10 August 2022 (file ref. III SA/Wa 3029/21). The Court was of…
Over the last few years, activities related to the charging of electric vehicles have given raise to many interpretative doubts whether they should be classified as a supply of goods or a supply of services on the grounds of VAT. These doubts were finally resolved before the Court of Justice of the EU. Facts The…
The introduction of the mandatory KSeF (National e-Invoicing System) will undoubtedly affect all issues related to invoicing, circulation of invoices within organizations or exchange of invoices with contractors. This will also concern self-billing, as invoices issued this way are subject to the obligation of being issued in KSeF, which will involve the necessity to properly…