Poland: Striking taxable person from VAT register; exit law compatible with EU law; construction management services subject to VAT

Court decisions

31 October 2023

The KPMG member firm in Poland prepared a report that includes summaries of the following recent court decisions.

A bench of seven judges of the Supreme Administrative Court on 23 October 2023 passed a resolution (case file I FPS 3/23) affirming that a taxable person can be struck off the active value added tax (VAT) taxpayer register without notice and without issuing a corresponding decision.
The Regional Administrative Court in Warsaw on 19 October 2023 (case file III SA/Wa 1500/23) held that the Polish exit tax under Article 30da of the PIT Act was compatible with EU law and not inconsistent with the decisions of the Court of Justice of the European Union (CJEU) on the taxation of the unrealized capital gains (e.g., judgments of 29 November 2011, case C-371/10 (National Grid), and 11 March 2004, case C-9/02 (Hughes de Lasteyrie du Saillant)). The court found that the Polish tax was consistent with the principle of proportionality because it includes limits based on the value of the transferred assets and the possibility to spread the tax into installments.
The Supreme Administrative Court on 24 October 2023 held (case file I FSK 2201/18) that comprehensive investment process management services provided by the taxpayer with respect to the construction of residential premises was subject to VAT at the rate of 23%.

Read an October 2023 report prepared by the KPMG member firm in Poland

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