Poland: Summary of recent indirect tax developments

A report that includes summaries of recent indirect tax developments

A report that includes summaries of recent indirect tax developments

The KPMG member firm in Poland prepared a report that includes summaries of recent indirect tax developments.

Actual VAT refund deadlines shorter than the statutory ones

In response to a parliamentary inquiry no. 34276, the Deputy Minister of Finance provided statistics showing that in May 2022, value added tax (VAT) refunds for which the maximum statutory deadline is set at 60 days were usually made within 35 days, while taxpayers using the automatic refund mechanism received the refund amounts in 11 days on average, measured from the date when the VAT return was approved. Introduced this year, the automatic refund mechanism allows for automatic examination of the validity of refunds and automatic transfer to bank accounts. It applies to VAT (and individual income tax) refunds up to the amount of PLN 5,000.

Depleted mineral deposits subject to reclamation in the context of real estate tax

In a recent decision (case file III FSK 708/21 (20 July 2022)), the Supreme Administrative Court held that since activities related to the reclamation and development of depleted lands constitute an element of extraction activity, it cannot be assumed that the subject lands that are about to become subject of reclamation activities are outside the scope of an entrepreneur’s business operations—regardless of whether the deposits are depleted, or a concession has expired. Consequently, the land owned by the taxpayer and used as a gravel, sand, clay, and kaolinite extraction site must be treated as applied in their business activity and, consequently, subject to real estate tax.

Read an August 2022 report prepared by the KPMG member firm in Poland

 

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