Poland: Right to deduct VAT on catering services purchased by hotel company; other tax developments
Hotel businesses can still claim deductions as long as they meet conditions previously stipulated by now-repealed provision
Hotel businesses can still claim deductions as long as they meet conditions
The Supreme Administrative Court (SAC) on August 7, 2024, held (case file I FSK 1622/20) that despite the repeal of Article 88(1)(4)(a) of the value added tax (VAT) law, taxable persons operating in the hotel industry retain the right to deduct input tax on catering and lodging services. The decision aligns with Article 176 of Directive 112.
The court affirmed that hotel businesses can still claim these deductions as long as they meet the conditions previously stipulated by the now-repealed provision.
Read an August 2024 report prepared by the KPMG member firm in Poland, which also covers:
- Up to €300,000 available in de minimis aid
- New templates for general and individual rulings
- Tax on land, buildings, means of transportation, and dogs can go up in 2025
- Transfer of claim is not subject to exclusion from being charged into tax-deductible costs
- Clearance opinion on share swapping and cross-border downstream merger
- Changes in JPK CIT
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