According to the CJEU judgment in Case C-276/14, Municipality of Wroclaw against the Minister of Finance, municipalities and their organizational units constitute a single taxable person for VAT purposes. Therefore, every city and municipality shall no later than 1^st January 2017 amend in the way the settlement of VAT in such a way, that a taxable person making the settlement of VAT on behalf of its organizational units and itself will be the city or municipality. This raises a serious risk under the Tax Penal Code, especially for the governors of cities and municipalities and treasurers.

Our actions in this regard include:

• Preparation of procedures for the centralization of VAT settlements for organizational units of local government
• Preparation of procedures limiting the risk of criminal tax liability arising from potential irregularities in the tax settlement of local government units
• Conduction of trainings for certain workers of local government offices in conducting settlements in respect of VAT
• Conduction of trainings on the procedures in respect of VAT accounting in a centralized model
• Current post-implementation support of cities, municipalities and local governments in the area of VAT.