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Poland: Summaries of recent court decisions

Time limit for bad debt relief inconsistent with VAT directive; legal activities of family foundations; taxation of free transmission easement; real estate tax issues

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April 4, 2025

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

  • The Supreme Administrative Court on March 20, 2025, held (case I FSK 1258/21) that the then two-year time limit established in Article 89a(2)(5) of the Value Added Tax (VAT) Act for the use of the so-called “bad debt relief” was inconsistent with Article 90(1) of the EU VAT directive.
  • The Voivodship Administrative Court on March 26, 2025, held (case I SA/Wr 807/24) that family foundations can legally engage in short-term apartment rentals under Article 5(1)(2) of the Act on Family Foundations.
  • The Supreme Administrative Court on March 25, 2025, held (case II FSK 813/22) that entering into a contract for a free transmission easement does not generate taxable revenue for the easement recipient under Article 12(1)(2) of the CIT Act.
  • The Supreme Administrative Court on March 25, 2025, held (case III FSK 1497/23) that there were no grounds for applying reduced real estate tax rates under Article 1a(1)(3) of the Act on Local taxes and Fees during the COVID-19 pandemic because hotel buildings were still generally used for business activities despite bans and restrictions imposed.
  • The Supreme Administrative Court on March 25, 2025 held (case III FSK 1669/23) that an area paved with concrete slabs located 30 km from the company's main place of business was subject to higher real estate tax rates because any properties owned by the company must be classified as being related to business activity, notwithstanding the fact that the area had never been used for the company’s operations and had never been recorded as a fixed asset.

Read the March 2025 report

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