VAT on loans. Did the taxpayer want to use the directive against Polish regulations?

In a non-final judgement of 8 October this year, the Provincial Administrative Court in Gdańsk ruled that a loan service is not a transaction in which benefits are cyclical and recurring. The performance of this agreement consists in a specific act of making capital available, which may be a one-off or in tranches, depending on how the agreement resolves these issues.

Our VAT expert, Zdzisław Modzelewski, disagrees with this ruling:
“In my opinion, the taxpayer was right. Since Poland has adopted the cash basis for determining the tax liability for financial services, it should be cash-based regardless of whether these services are VAT-exempt or taxable.

You can read why, in our expert’s opinion, the taxpayer is right in an interview with Katarzyna Jędrzejewska in Dziennik Gazeta Prawna: https://lnkd.in/dPqBJ27V