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Poland: Free-of-charge delivery of goods, costs of fixed asset, tax exemption and withholding tax, procurement arrangement services

Summaries of recent Supreme Administrative Court decisions

July 31, 2024

The KPMG member firm in Poland prepared a report that includes summaries of the following decisions of the Supreme Administrative Court.

  • The court on July 24, 2024, held (case file FSK 1470/20) that the provision of a larger volume of goods to contractors against the same payment due was a bulk discount, and not a free-of-charge delivery of goods under Article 7(2) of the VAT Act.
  • The court on July 19, 2024, held (case file II FSK 1426/21) that under Article 18d(2a) of the PIT Act, the costs of developing and manufacturing a fixed asset (a pilot line) not used in connection with research and development (R&D) activities cannot be charged into eligible costs.
  • The court on July 19, 2024, held (case file II FSK 1428/21) that to the extent a tax exemption under Article 21(1)(16)(b) of the PIT Act is available, the tax remitter has not obligation to collect withholding tax under an applicable income tax treaty.
  • The court on July 19, 2024, held (case file II FSK 146/22) that activities performed in connection with procurement arrangement services must be assessed collectively for purposes of determining whether such services are consultancy services for purposes of Article 15e(1)(1) of the CIT Act. Moreover, the statistical grouping of services is not decisive for the application of Article 15e of the CIT Act.

Read a July 2024 report prepared by the KPMG member firm in Poland

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