Poland: Branch may deduct interest on loan from foreign parent; VAT exemption for private imports (Supreme Administrative Court decisions)

Supreme Administrative Court decisions concerning deductibility of interest by branch loan interest and private imports

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August 7, 2025

The Supreme Administrative Court in late July 2025 held that:

  • A branch may deduct interest on a loan from its foreign parent company, which financed the loan with bank credit (case file II FSK 1423/22).
  • The importation of goods to Poland in a consignment dispatched from a third country by a private person to a private person residing in an EU member state other than Poland may benefit from the value added tax (VAT) exemption under Article 52 of the Polish VAT Act, provided certain conditions are met (case file I FSK 110/21).

Read an August 2025 report prepared by the KPMG member firm in Poland

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