KPMG Weekly Tax Review 7 JAN - 13 JAN 2025
New calls under SMART path now available.
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Welcome to the next issue of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.
On 10 January 2025, a new call for applications for grants from the European Funds for a Modern Economy 2021-2027 (FENG in Polish) program under the SMART Path was launched. The total amount of PLN 1.3 billion available under the SMART Path can be allocated to: comprehensive/modular projects of consortia of enterprises and research units, comprising one mandatory component - R&D or implementation module - and any number of complementary modules, related to: R&D infrastructure, digitalization, greening, internationalization, or development of competences. The call is intended for business consortia, also including research organizations and NGOs. What is new that it is also open to consortia formed by SMEs. Applications will be accepted until 28 March 2025.
According to the judgment delivered by the Supreme Administrative Court on 8 January 2025 in case I FSK 743/21, an online platform enabling customers to use instalment payments by intermediating in submitting a credit application to a bank shall be treated as rendering agency services, exempt from VAT under Article 43(1)(38) of the VAT Act. This kind of service cannot be assumed to be a purely material and technical activity.
On 8 January 2025, the Supreme Administrative Court rendered judgment in case I FSK 648/21, relating to a consortium agreement under which each party acts as an independent VAT payer. The leader of the consortium and the consortium members exchange services, such as emergency medical services, for which they are remunerated based on a contract determining parties’ obligations and service fees. The Polish National Health Fund (NFZ) uses services rendered by the leader, while the leader engages consortium members. The remuneration paid by the leader to the consortium members constitutes a fee for the services they render, meaning that the services are sold and, consequently, subject to VAT. Next, the leader transmits the services to the NFZ, which is also subject to taxation pursuant to Article 8(2a) of the VAT Act. All transactions between the leader and consortium members must be supported by invoices, and the taxation of these services affects the determination of the VAT ratio.
According to the judgment delivered by the Supreme Administrative Court on 8 January 2025 in case I FSK 1049/21, the exchange of one currency for another does not meet the definition of a “thing” under VAT regulations and, consequently, is not subject to VAT. This means that it is not possible to indicate the value of the exchanged currency alone, without considering the existing margin. The margin, which constitutes the consideration for the taxable person and should be treated as the taxable amount, is exempt from VAT. Moreover, it should be shown in item no. 10 of the VAT-7 return.
The Ministry of Finance has made available the VAT Taxpayer List API to verify the status of entities in the VAT register. The API offers the ‘search’ ‘check’ method.
The ‘search’ method allows to obtain full information about entities based on their NIP, REGON or bank account number and date. It returns the full range of data and a unique key to confirm the query. The limit is 10 queries for a maximum of 30 entities at a time. The ‘check’ method, on the other hand, allows a quick check of the account assignment to an entity, returning a YES or NO answer and a confirmation key. The limit is 1 query per entity. Once the limit is exceeded, access to the API is blocked until midnight. In addition, a file is available for mass verification of NIP-account pairs, updated daily on business days. The tool is intended to support entities in ensuring tax compliance.
API Wykazu podatników VAT - Ministerstwo Finansów - Krajowa Administracja Skarbowa - Portal Gov.pl
According to the judgment rendered on 3 January 2025 by the Voivodship Administrative Court in Warsaw in case III SA/Wa 2385/24, tax consequences of paying interest by a Polish branch of a borrower (a Luxembourg company), including from the perspective of its obligations as a withholding tax remitter, should be assessed in relation to the entities with the status of beneficial owner of the interest, since they are the taxpayers in relation to the payment of this interest and not the intermediary entity. The core principle of the look-through approach is that tax consequences of making interest payments should be determined for their beneficial owner. The fact that the interest is transmitted to the beneficial owner via another entity has secondary meaning.
During a sitting held on 9 January 2025, the Special Subcommittee for assessing the governmental bill amending the bill on Healthcare Services Financed from Public Funds and Certain other Acts (bill no. 838) approved the work schedule providing for a 2-week deadline for accepting remarks to the said bill. After analysing the opinions, a meeting will take place in about a month with a debate on the bill.
As promised by the chair of the Subcommittee, work on the bill is expected to be completed by April at the latest, and the bill itself is expected to enter into force on 1 January 2026. Part of this wide-ranging reform are also amendments that have already entered into force, such as the removal of the obligation to pay contribution on the sale of fixed assets by companies.
On 1 January 2025, a regulation changing the scope of thermal modernization relief application entered into force. The regulation stipulates that the range of equipment that qualifies for write-off under the relief includes energy storage and micro-wind turbines. In addition, it excludes the possibility to use the relief for renovations if heat sources in the form of oil and gas furnaces in properties are used. The scope of the relief itself has also changed. From this year, a deduction of up to PLN 53 000 per person spent on heat or energy storage facilities installed in private homes will be universally available.
