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We are happy to let you know that our tax advisors have scored a major win in a dispute with the Director of National Revenue Information.
On 9 September 2024, after a procedure that took a total of 4 years, the Supreme Administrative Court ruled in favour of our client, confirming that the transportation services imported by our client are continuous services that could be accounted for once a month at the end of each monthly period of account. This judgment repeals the earlier judgment of the lower court and the private tax ruling from which the whole process began, which were both unfavourable for our client.
The case is important for taxable persons generally for a number of reasons:
Confirms continuous nature of services. The court held that transport services may be reported for VAT purposes as continuous services at the end of each successive period of account agreed between the parties. This simplifies VAT compliance and is important for both firms providing such services and those purchasing them from foreign customers as imported services, because they no longer need to report each separate shipment completed within the period of account.
Protects against red tape creep. Services considered continuous may be accounted for once a month, reducing administrative burdens and accounting expenses.
Reduces the risk of criminal tax liability. The judgment offers those in charge of tax compliance in companies a way to avoid criminal tax liability risk where they follow simplified VAT compliance process applicable to the provision and importation of transport services that are rendered regularly and are subject to successive statements of account.
The case may become an important precedent for other firms with similar issues as they try to ensure tax compliance in the case of transport services or other such services accounted for on a periodical basis.
The case was managed by Monika Bilska and Szymon Karpiński.
Congratulations on your success!
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