Municipalities and their organizational units constitute a single taxable person for VAT purposes.
Municipalities and their organizational units constitute a single taxable person for VAT.
According to the CJEU judgment in Case C-276/14, Municipality of Wroclaw against the Minister of Finance, municipalities and their organizational units constitute a single taxable person for VAT purposes. Therefore, every city and municipality shall no later than 1st January 2017 amend in the way the settlement of VAT in such a way, that a taxable person making the settlement of VAT on behalf of its organizational units and itself will be the city or municipality. This raises a serious risk under the Tax Penal Code, especially for the governors of cities and municipalities and treasurers.
Our actions in this regard include: