On 1 July 2021, new requirements for VAT settlement in JPK_V7 came into force. The exception are regulations related to the e-commerce package and the obligation to mark in the sales register the date of payment or the date of payment in the bad debt relief, which come into force on 1 January 2022.
Tax authorities are not entitled to make apparent use of the regulation which allows for suspension of the limitation period or for its non-initiation in the case of commencement of penal fiscal proceedings (art. 70 § 6 item 1 of the Tax Ordinance Act). Additionally, a taxpayer must be notified of this fact and the suspicion of a crime or offence must result from his failure to fulfil a tax liability. Unfortunately, in practice, there is a frequent abuse of the law by the tax authorities, consisting in the initiation of penal fiscal proceedings in the case of a tax offence only for the appearance’s sake, to extend the time for completion of tax proceedings.
Situations related to a tax inspection generally arouse fear and apprehension among taxpayers just after receiving a notice of the intended tax inspection. Indeed, a tax inspection is a procedure that goes far beyond the scope of verifying activities, whereby the tax authority, as a rule, verifies the timeliness and correctness of filed returns and paid taxes.
On the grounds of the amendment of the Corporate Income Tax Act on 30 November 2020, limited partnerships have been subject to CIT. The form of conducting business according to the rules, when the limited partner was usually a natural person with a significantly limited scope of personal liability and the general partner was a limited liability company (sp. z o. o. sp. k.), whose liability was limited to the amount of equity, has been forgotten.
On 26 May 2021, as a result of the lack of compromise on some crucial points of the draft agreement, the Swiss authorities decided not to sign the institutional agreement with the European Union. Thus, the negotiations between the European Union and Switzerland ended in failure and the institutional agreement aimed at secured Switzerland’s barrier-free access to the EU internal market and enabling its expansion was not signed.
The CJEU in the judgment issued on 15 April 2021 indicates that penalties concerning irregularities in VAT settlements must take into account of all the circumstances of the case. They cannot be applied where it is impossible to estimate the negative effects of an action and without verifying the intentions of the taxpayer. Penalties are intended to prevent fraud and tax offences, and therefore cannot be an expression of oppressive treatment of entrepreneurs by the state authorities.
Taxpayers using fuel cards are unsure when they will be entitled to deduct VAT and when their purchase of fuel will be exempt from this tax. The problem relates to the lack of clarity regarding the classification of such purchase as a supply of goods or provision of a financial service. The Ministry of Finance, after long consultations, issued on 16 February 2021 a general ruling concerning transactions performed with the use of the so-called fuel cards. The interpretation was intended to finally clarify doubts of taxpayers as to when refuelling with fuel cards is a supply of goods and when it is a service.
The consultations of the Ministry of Finance on the draft amendment to the VAT Act to introduce e-invoicing have ended. Poland will join countries like Spain, Portugal or Italy that have already introduced this innovation. It means not only facilitation for entrepreneurs, but also greater control over their transactions.
The discussion around the amendment of the Act of 20 May 2016 on investments in wind power plants (Journal of Laws of 2020, item 981, 1378; hereinafter: the Distance Act) continues. Since the beginning of 2020, the government has been working on the amendment of the Distance Law, the main objective of which is to introduce solutions for investment processes concerning wind power plants. These are currently significantly restricted by the so-called 10H rule.
Taxpayers can reclaim interest for failing to declare intra-Community acquisitions of goods on time. According to the Court of Justice of the European Union, Polish rules on the right to deduct VAT on intra-Community acquisitions of goods are in breach of EU rules. The CJEU ruled that the right to account for tax due and input tax in the same period should not be subject to any time limit. Furthermore, IC-acquisition must always constitute a tax-neutral transaction, which means that the tax authorities are not entitled to interest for a late declaration of the transaction.