With respect to art. 29 of the VAT Act, the understanding thereof up to 31 December 1996 meant that taxpayers selling goods or rendering services, including those in the scope of trading and catering services, to natural persons not carrying on business activity would lose the right to reduce output VAT by the amount of input VAT incurred on the purchase of goods and services where they failed to comply with the obligation to use a fiscal cash register.
The tax chamber in Warsaw holds the position that the aforementioned taxpayers lose the right to reduce output VAT by input VAT in proportion to the value of services rendered to natural persons not carrying on business activity. However, the Ministry of Finance takes the position that they lose the right to reduce output VAT by input VAT on all services rendered.
From 1 January 1997 taxpayers selling goods and rendering services, including those in the scope of trading and catering services, to natural persons not carrying on business activity lose the right reduce output VAT by the equivalent of 30% of input VAT incurred on the purchase of goods and services where the requirement to keep records of turnover and output VAT by using a fiscal cash register is not respected. From April 1 1997, the taxpayer is liable to a fine of up to 10,000 PLN for each transaction which is not properly registered.
Tax laws and practise are constantly being revised and, whilst every effort is made to ensure that the information in this tax newsletter is accurate and timely, no decision should be taken on the basis of the information herein without first consulting with KPMG Polska.
Should you have any questions in relation to the above issues, please contact:
The tax chamber in Warsaw holds the position that the aforementioned taxpayers lose the right to reduce output VAT by input VAT in proportion to the value of services rendered to natural persons not carrying on business activity. However, the Ministry of Finance takes the position that they lose the right to reduce output VAT by input VAT on all services rendered.
From 1 January 1997 taxpayers selling goods and rendering services, including those in the scope of trading and catering services, to natural persons not carrying on business activity lose the right reduce output VAT by the equivalent of 30% of input VAT incurred on the purchase of goods and services where the requirement to keep records of turnover and output VAT by using a fiscal cash register is not respected. From April 1 1997, the taxpayer is liable to a fine of up to 10,000 PLN for each transaction which is not properly registered.
Tax laws and practise are constantly being revised and, whilst every effort is made to ensure that the information in this tax newsletter is accurate and timely, no decision should be taken on the basis of the information herein without first consulting with KPMG Polska.
Should you have any questions in relation to the above issues, please contact:
Oliver Sinton KPMG Polska LIM Center - Marriott Hotel - IX floor Al. Jerozolimskie 65/79 00-697 Warsaw, Poland Tel: +48 (22) 630 7236 Fax: +48 (22) 630 6355
