Author: ts_pm

The issue of analyzing the obligation to prepare tax documentation has so far been the case mainly in transactions between related parties. Documentation of transactions between unrelated entities happened rarely and, in practice, involved documenting payments for goods or services purchased from a tax paradise entity.

Starting from 2021, as a result of the amendment to the Income Tax Act, the documentation obligation affects transactions between related and unrelated entities to a much wider extent. The Ministry of Finance has published a draft explanatory note on the controversial amendment, announcing the start of tax consultations on this document.

Detailed information is available in our alert:
http://newsletter.gww.pl/alert/Szerszy_obowiazek_dokumentacji_cen_transferowych_032021.pdf

The Court of Justice of the European Union issued a judgment in a case filed by the Voivodship Administrative Court in Gliwice (decision of 4 November 2019, ref. No. I SA/Gl 495/19), concerning  compliance of national regulations with the VAT Directive in the scope of recognition of input and output tax on intra-Community acquisition of goods in two different settlement periods. Polish regulations introduced in 2017 raised doubts regarding observance of the principle of VAT neutrality. In the opinion of the CJEU, introduction by the Polish legislator of an additional requirement, which leads to disclosing of output and input VAT in two different settlement periods, is contrary to the essence of regulations applicable to the common system of value added tax.

The judgment concerns intra-Community acquisition of goods transactions, however it is worth noting that it can be used to support refund of overpaid interest in connection with other transactions based on the reverse charge mechanism. If an application for overpayment is submitted within 30 days from the publication of the CJEU judgment, the refund may be increased by an appropriate interest rate.

Photo by katarina_dzurekova

As of 01 January 2021, a fee was imposed on alcoholic beverages sold in bottles with a nominal volume not higher than 300 ml. According to the legislator, it is the small volume of an alcoholic beverage bottle, the relatively low price of the product, and the ease of quick consumption that very often determine the choice of these products (up to 300 ml) among consumers and lead to their considerable attractiveness, especially among certain social groups.

Angelika Dahms discusses practical problems associated with the new regulation in her latest article for Przegląd Podatkowy.

The article can be download below.

Photo: PAP.

Paweł Wójcik, attorney-at-law, managing partner of GWW Legal, comments on the draft of the new Developer Act in the article published in Rzeczpospolita, entitled Jest bezpiecznie, ma być jeszcze bezpieczniej (It is safe and it is supposed to be even safer).

– The requirement to obtain consent from mortgage creditors for an encumbrance-free sale already at the stage of a development contract is a good solution. However, the issue of the limitation period for claims for damages under sales contracts of premises was disregarded. This matter should be regulated by introducing a clear limitation period, since due to the jurisprudence of the Supreme Court, liability on this account is practically unlimited in time, which is an evident gap in the law – points out Mr. Wójcik.

Link to the article: https://www.rp.pl/Mieszkaniowe/303189892-Jest-bezpiecznie-ma-byc-jeszcze-bezpieczniej.html

This Wednesday, the Ministry of Finance announced draft amendments in VAT reporting. The purpose of the amendment is to align provisions of the regulation to the explanations presented by the Ministry of Finance in the "questions and answers" to the JPK_VAT file with tax return and in the interpretations presented by the head of the National Tax Information – writes Krzysztof Czekaj from the tax advisory team.

You can read in an article by our expert on Prawo.pl on what changes in JPK_V7 reporting, including simplifications, we may expect:
https://www.prawo.pl/podatki/nowelizacja-przepisow-o-jpk_v7-i-rozliczeniach-vat-krzysztof,507191.html

Taxpayers have increasing doubts as to how to settle renovation expenses. Some amounts can be deducted straight ahead, while some other must increase their initial value and be depreciated. And all this is due to lack of a precise border between renovation and improvement. This leads to numerous disputes with the tax office. The latest interpretation does not explain everything either.

Mateusz Pietranek, a tax advisor, expert in the field of income taxes at GWW, comments for Prawo.pl the latest tax interpretation of the director of the National Tax Information No. 0114-KDIP3-2.4011.848.2020.2.MS,  which concerned the qualification and separation of respective expenses related to real estate as renovation or improvement within the meaning of tax regulations.

"The interpretation presents factors that may be taken into account by taxpayers when classifying incurred expenses as a renovation, with particular emphasis on the need to replace worn technical components, whose condition deteriorated as a result of day-to-day operation. It was also emphasized that renovation activities should be aimed at maintaining the existing substance of buildings. The tax authority stated that when performing them, materials complying with the current technological standards may be used. It is important, however, that the renovation should not result in an increase in the useful value, but only in restoration of a particular fixed asset to its original character. Contrary to the features described above, as a result of improvement, a fixed asset should be modernized or adapted to perform new functions.
– The interpretation may be an important determinant for taxpayers carrying out construction works with regard to the acquired real estate – emphasizes Mateusz Pietranek

The article is available at: https://www.prawo.pl/podatki/remont-i-ulepszenie-w-kosztach-uzyskania-przychodow,507146.html

The change will be implemented gently, so investments planned under the old regulations will be completed. It is extremely important for us to provide local governments with money for the reform, declares Deputy Minister of Development Anna Kornecka.

In today's article in Dziennik Gazeta Prawna, we will find a statement by Joanna Sebzda-Załuska, GWW partner, about the planned reform of spatial development.

“If we managed to secure funds to support municipalities for the implementation of the future reform in the amount of almost PLN 1 billion, a question might be asked why these funds should not be allocated to the ongoing support of municipalities in developing local spatial development plans. Then it would be possible to marginalize the decision on development conditions, so much criticized, and increase the role of investing based on local plans”.

Only 8 out of 100 Poles aged over 45 have written a will. This is the result of the Kantar survey, commissioned by GWW in cooperation with the Open Forum Foundation.

Within the framework of the "Zapisz Dobro" social campaign, we try to make people feel comfortable with the issue of the last will, which is often treated as a taboo subject. Anyone who would like to speak to a lawyer and find out how to write a will can do so through the testament helpline. For the next two weeks, lawyers specializing in inheritance law are available at 500-857-074.

Our advisors are available to you:

• Aldona Leszczyńska Mikulska – 17 March from 15:00 to 17:00
• Tomasz Krzywanski – 26 March from 15:00 to 17:00.

More information on: https://zapiszdobro.pl/

The GWW Law Firm is the partner of the "Zapisz Dobro” social campaign.

Further to the judgment of the Constitutional Tribunal of 24 February 2021, in which the issue of taxation of real estate belonging to business persons was resolved, we would like to inform you that this judgment was published in the Journal of Laws on 3 March 2021 (Journal of Laws of 2021, item 401).

This is important information for:

• taxpayers in respect of whom the tax authority issued a decision determining the amount of the tax liability in tax proceedings and this decision has become final and binding, and
• taxpayers who received a decision establishing the amount of the tax liability and did not appeal against it.

In these cases, the overpayment refund procedure provided for in Article 74 of the Tax Code will not apply, but the procedure for resuming the proceedings will be applicable in this place. This means that the refund of the overpayment will be possible only at the request of the party, submitted within one month from the date of entry into force of the judgment of the Constitutional Tribunal. This deadline will finally expire on 3 April 2021. It is a strict and final date and a procedural act performed after it will not bring any procedural effects.

Details of this judgment, crucial for many taxpayers, are presented in the following alert:
http://newsletter.gww.pl/alert/Opodatkowanie-nieruchomosci-przedsiebiorcow-wyrok-TK.pdf

The Polish Association of Developers (PZFD), together with the Chamber of Architects of the Republic of Poland, the Association of Architects of the Republic of Poland, the Society of Polish Town Planners, the Wielkopolska Chamber of Construction, MP Jacek Tomczak and a special guest – Minister Anna Kornecka invite you to the conference: "Calculating the usable area of ​​buildings and the intensity of development in the light of recent legislative changes."

We invite you to participate in the event on behalf of the GWW Law Firm, which is a supporting member of the Polish Association of Developers.

The conference will be held on March 16 (Tuesday), from 10:00 – 11:30, on the Zoom platform.
Registration at: biuro@pzfd.pl