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Poland: U.S. sales tax treated as tax-deductible cost (Supreme Administrative Court decision)

The Supreme Administrative Court held that U.S. sales tax paid by a seller on behalf of a buyer was a tax-deductible cost for the seller.

August 21, 2024

The Supreme Administrative Court on August 9, 2024, held (case file II FSK 1506/22) that U.S. sales tax paid by a seller on behalf of a buyer was a tax-deductible cost for the seller.

The court found that the payment was a direct cost allocable to each sales transaction (i.e., the tax was related to specific revenue from the sale of a specific product) and not a cost related to the taxpayer’s general revenue.

Read an August 2024 report prepared by the KPMG member firm in Poland

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