We present below a short summary of the most important changes in tax law and tax practice in May:
- the act amending the VAT Act was published the “Journal of Laws” (item 1137) – exemption for EU and NATO defense activities, extension of the so-called the first anti-inflationary shield by the end of July;
- The Senate adopted with amendments and submitted to the Sejm the act on the amendment of some acts in order to automate the handling of certain matters by the National Revenue Administration. Note: during the Senate’s work on the above-mentioned law on the “automation” of KAS, an amendment was proposed that postpones the entry into force of the provisions on VAT Groups from July 1, 2022 to January 1, 2023;
- the Decree of the Minister of Finance amending the ordinance on goods and services for which the VAT rate is lowered, and the conditions for applying reduced rates was published the “Journal of Laws” (item 1059) – repealing some items from the annex to the ordinance in connection with changes to the VAT Act, introduced by the new Act on medical devices.
- the Decree of the Minister of Finance amending the regulation on exemptions from tax on goods and services was published the “Journal of Laws” (item 971) – introduction of tax exemption for services in the field of renting real estate of a residential nature provided to local governments and their units / companies ( for the rental of these real estate to natural persons for their own residential purposes);
- The Ministry of Finance does not intend to grant a zero VAT rate for donations and gratuitous assistance benefits provided via NGOs to refugees and those fighting in Ukraine – according to the response of the deputy finance minister Artur Soboń to the speech of the civil rights ombudsman (source: “DGP”);
- the mere fact that a foreign entity has a back office (without proper control) does not create a fixed establishment for VAT in Poland – judgment of the Supreme Administrative Court of May 19, 2022 (file reference number I FSK 968/20);
- The European Commission has proposed a new tax relief mechanism for increasing capital (an alternative to debt financing costs) – the so-called DEBRA. We encourage you to read our article on this topic: https://www.ulve.pl/en/debra-tax-deduction-on-capital/.