KPMG Weekly Tax Review 18 NOV - 25 NOV 2024
Small enterprises exempt from VAT within EU.
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Welcome to the next issue of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.
At a sitting held on 19-22 November 2024, the Lower House of the Polish Parliament passed the Act amending the Act on electronic deliveries. The Act establishes a transitional period ending on 31 December 2025, during which public entities are given time to better prepare for the implementation of the e-Deliveries system. The Sejm also passed the Act amending the Accounting Act and the Act on Statutory Auditors, Audit Companies, and Public Supervision, and certain other acts, which brings new sustainability reporting obligations for certain entities. These Acts are now being assessed by the Senate. Furthermore, on 21 November 2024, the Sejm passed unamended the Act on the Agricultural Tax, the Act on the Local Taxes and Fees, the Act on the Forest Tax, and the Act on the Stamp Duty. The Act introduces a stand-alone definition of “building” and “non-building structure”.
Druk nr 761 - Sejm Rzeczypospolitej Polskiej
On 20 November 2024, the Act amending the Value-Added Tax Act and certain other acts was signed by the President into law. The Act provides for extending the subjective VAT exemption to entities registered in other EU Member States, which also apply the special scheme for small enterprises. The exemption can be used by enterprises with the total annual value of supplies of goods and services, excluding value-added tax, including the value of sales in the territory of the country, excluding tax, not exceeding the amount of EUR 100,000 or the value of sales, excluding tax, not exceeding the amount of PLN 200,000 in the previous and current taxable year. The exemption will not apply if the taxpayer delivers goods or provides services listed in the Act within the territory of the country.
On 19 November 2024, the bill amending the Act on healthcare services financed from public funds and certain other acts was submitted for the first reading before the Lower House of the Polish Parliament. The goal thereof is to bring amendments to the method of calculating and paying health insurance contributions by entrepreneurs starting from 1 January 2026, depending on the applied taxation scheme. Entrepreneurs are now to pay health contributions consisting of a fixed (9% of 75% of the minimum wage) of and variable component (on the excess of income). An additional contribution of 4.9% on the excess over 1.5 times the average wage will be due from entrepreneurs settling their taxes according to the tax scale or using the flat tax scheme, while entrepreneurs using the lump-sum tax scheme will pay an additional contribution of 3.5% on the excess over 3 times the average wage. Additionally, the contributions for taxpayers under the fixed amount tax scheme will be decreased to 9% of 75% of the minimum wage, while the possibility to deduct health insurance contributions paid from income tax will be repealed.
Further questions and answers on JPK_CIT, numbered 85 to 102, have been published on the website of the Ministry of Finance. The new answers pertain, inter alia, to fixed assets fully depreciated before 1 January 2025 and the date of their removal from the register, as well as instances in which specific PD markings should be applied, the method of determining the tax result when completing the JPK_KR_PD form, the depreciation value entered, and the method of filling out the “Log description” field in the form.
https://www.podatki.gov.pl/jednolity-plik-kontrolny/jpk_pd/pytania-i-odpowiedzi-jpk_pd/?querry=
On 20 November 2024, a general ruling of the Minister of Finance no. DD9.8202.1.2024, dated 15 November 2024, on conditions to apply the exemption set forth in Article 22(4) of the CIT Act, was published. According to the ruling, the condition of “not enjoying exemption from income tax on entire income, irrespective of the sources from which the income is earned” is in no way infringed by the fact that a dividend recipient from any other EU or EEA country applies an objective exemption to the dividend received under tax regulations implementing the provisions of the Parent-Subsidiary Directive into their national regulatory framework. Moreover, any transfer of profits, such that the dividend is not taxed within the EU or EEA, when the beneficial owner is a company established for tax purposes outside the EU and EEA, or in the absence of income tax payment by the taxpayer in a given taxable year resulting from their individual circumstances, do not in any way indicate that the entity enjoys tax exemption on their worldwide income. Such circumstances can, however, be assessed against Article 22c of the CIT Act.
Having examined the judicial inquiry submitted by the Provincial Administrative Court in Poznań, which arose in the case no. I SA/Po 299/24, on 21 November 2024, the Constitutional Tribunal ruled that (case file P 11/24) Article 23(1)(45a)(a) of the PIT Act, to the extent it excludes from tax-deductible costs the write-offs applied to the initial value of fixed assets and intangible asset acquired free of charge by way of inheritance, enjoying inheritance and donation tax exemption, the depreciation of which started before 1 January 2018, is incompatible with the principle of protection of business in progress derived from Article 2 of the Constitution of the Republic of Poland.
According to the judgment of the Supreme Administrative Court dated 19 November 2024, case file II FSK 230/22, reimbursement of costs of business travels by car service (taxis) shall be treated as employees’ revenue within the meaning of Article 12(1) of the PIT Act. In the examined case, such revenue can be exempt from tax under Article 21(1)(160)(a) of the PIT Act, but only when the documented costs of using a car service for business travel by employees in target locations have been reimbursed.
According to the judgment of the Supreme Administrative Court, case file I FSK 1356/19, services rendered by a company to electric vehicle users, related to the provision of electric vehicle recharging, shall be treated as a single comprehensive service. In light of the unequivocal stance of the CJEU in its judgment of 20 April 2023 in case C-282/22, it must be assumed that the predominant activity in this comprehensive service is not the provision of access to electric vehicle recharging facilities along with ancillary services, but the supply of electricity, while the remaining services should be perceived as accessory performances.
Obligation to integrate cash registers with payment terminals to be suspended
Pursuant to the Act on top-up taxation of members of multinational enterprise groups and large-scale domestic groups, the obligation to integrate cash registers with payment terminals is to be suspended for 3 months, until 1 April 2025. The Ministry of Finance notes that after this time the obligation will be completely abolished. Data on payments will be reported by acquiring banks. The transitional period has been introduced to ensure that entrepreneurs, anticipating the forthcoming law abolishing the integration obligation, do not have to integrate their systems or face penalties for failing to do so. The abolition of the obligation has been announced by the bill amending the Value-Added Tax Act and certain other acts.
https://www.gov.pl/web/kas/odroczenie-obowiazku-integracji-kas-rejestrujacych-z-terminalami
