KPMG Polska's tax partner, Krys Szczotka, joined the heads of tax of Coopers & Lybrand, Ernst & Young and Deloitte & Touche in signing an open letter to Prime Minister Wlodzimierz Cimoszewicz to protest at the Finance Ministry's decision that firms who had donated goods and services to victims of this summer's floods will have to account for input VAT on their donations.
The Ministry had announced in July that donations would be free from output VAT, but subsequently announced that there would be no deduction for the input tax incurred in making these donations. This has effectively added 22% to the cost of every donation. In the view of the four firms, not only is the Ministry's position incorrect from a technical point of view, it is also morally questionable, as these donations were made in good faith.
This is the first such protest by international advisors in the history of Poland and has been widely reported in the Polish media, almost entirely in a positive light.
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 Ministry had announced in July that donations would be free from output VAT, but subsequently announced that there would be no deduction for the input tax incurred in making these donations. This has effectively added 22% to the cost of every donation. In the view of the four firms, not only is the Ministry's position incorrect from a technical point of view, it is also morally questionable, as these donations were made in good faith.
This is the first such protest by international advisors in the history of Poland and has been widely reported in the Polish media, almost entirely in a positive light.
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
