The end of the dispute about the moment when tax obligation for construction and construction-assembly services arises!

On 18 July this year, the Supreme Administrative Court announced its judgment in favor of Budimex, stating that if construction works are carried out on the basis of FIDIC contractual agreements, the tax office cannot claim that completion of these services took place at the time of their material implementation. This means that the contractor has the right to consider that they were completed out at the time of signing a handover record. From that day only, the time limit runs for issuing an invoice, to which the moment of the tax obligation is related according to the VAT Act.

By this judgment, the Supreme Administrative Court revoked the judgment of the first instance court as well as the interpretation of the Ministry of Finance regarding the moment when the tax obligation relating to construction and construction-assembly services arises. Referring to the justification of CJEU judgment of 2 May 2019 , it pointed out what criteria should be analyzed when specifying the "date" of the construction service completion.

Pełnomocnikiem w sprawie przed NSA oraz przed TSUE była Małgorzata Militz, tax advisor and partner at GWW, was a representative in the case before the Supreme Administrative Court and the CJEU .

More information about the judgment can be found in Dziennik Gazeta Prawna: https://podatki.gazetaprawna.pl/artykuly/1422971,nsa-budimex-vat-przesuniecie-obowiazku-podatkowego-fidic.html