Poland: Summaries of recent Supreme Administrative Court decisions

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

• The court on April 23, 2025, held (case I FSK 2150/21) that the granting of a power of attorney by the seller of a property to the prospective purchaser, authorizing the latter to act on the seller's behalf in making modifications to the property to suit the purchaser's requirements, is not a transaction subject to value added tax (VAT).
• The court on April 23, 2025, held (case II FSK 959/22) that grid connection fees are tax-deductible expenses under the general provisions outlined in Article 15(1) of the CIT Act, and are not included in the basis of a new fixed asset.
• The court on April 16, 2025, held (case II FSK 973/22) that Article 16(1)(22) of the CIT Act, which outlines exclusions from tax-deductible costs, does not apply to all contractual penalties; it is limited to penalties related to defects in delivered goods and services (including delays in rectifying such defects or delivering goods or services free of defects). Therefore, a contractual penalty paid by a company for a delay in the performance of construction works is not subject to this exclusion and can be considered a tax-deductible cost, provided the general conditions under Article 15(1) of the CIT Act are satisfied.

Read the April 2025 report