Can overcharged VAT on consumer sales be reclaimed?
The position on this issue was given by the Court of Justice of the European Union (the CJEU) in its ruling of 21 March 2024, ref. C-606/22, which was issued as a consequence of a request for a preliminary ruling submitted by the Supreme Administrative Court.
The new obligation in the Accounting Act
On 20 March 2024, the Sejm amended the Accounting Act, which constitutes the transposition of Directive 2021/2101 of 24 November 2021. The provisions of the directive represent part of the European Commission's package on countering tax avoidance by multinational companies. An estimated EUR 50 - 70 billion is lost by the EU annually as a result of such activities.
Definition of a controlled transaction
The term controlled transaction, as defined in Art 11a(1)(6) of the Corporate Income Tax Act (and Art. 23m (1)(6) of the Personal Income Tax Act), poses many interpretational difficulties for taxpayers.