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The Global VAT Specialist Group updates MGI Worldwide with CPAAI members on the VAT Refund in Poland

20th July 2020

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In the times of the coronavirus pandemic, ensuring liquidity is crucial to maintain financial stability.

Company's cash flow is significantly affected by macroeconomic (external) and microeconomic (internal) factors. Even though companies do not have any control over many of these factors, one of the most effective ways to increase the company's cash flow is to get a VAT surplus refund.

What business lines can potentially generate VAT surplus in Poland?

As a rule, a taxable person may recover input tax, charged on goods and services supplied to it for business purposes, if it relates to the taxpayer’s supplies. A taxpayer generally recovers input tax by deducting it from output tax, charged on supplies performed by them. Input tax includes VAT paid on the purchase of goods and services, VAT paid on imports of goods and on intracommunity acquisitions, VAT self-assessed for reverse-charge services received from outside Poland and VAT self-assessed for goods on which the purchaser is liable to account for VAT.

As a rule, from our experience usually there are businesses that generate significant amounts of VAT surplus i.e. activities of global traders who conduct 0% rated supplies of goods and provision of services outside Poland.

VAT surplus also appears as a result of applying lower VAT rates with respect to supplies made if the taxpayer purchases goods and services subject to standard VAT rate (23% in Poland). Pharmaceutical and medical industries may be indicated as business sectors, which benefit from preferential VAT rate supplies that often generates VAT surplus.

READ THE FULL NEWSLETTER HERE

For more information on this developing topic, please contact: Przemysław Roszkowski, at Arena Tax sp. z o.o., Warsaw, Poland, przemyslaw.roszkowski@arenaadvisory.com, or Tomasz Modzelewski, at MGI Modzelewski, Warsaw, Poland, t.modzelewski@modzelewski.tax.

Our Global VAT Specialists 

Our experienced VAT specialists provide a centre of excellence in the field of VAT & Customs across the world. Besides compliance questions, these experts can answer any day-to-day questions as well as assist you, among others, with the correct qualification of transactions, evaluations of contracts, VAT audits and setting up processes together with creating manuals and guidelines. Visit the microsite to meet the Global team.

To learn more about the activities of the Global VAT Specialist Group, or any of the other Groups, please contact International Business Development Manager, Nicki Lynn nlynn@cpaai.com.

MGI Worldwide with CPAAI is a top 20 ranked global accounting network and association with over 10,000 independent auditors, accountants and tax experts in some 460 locations in almost 100 countries around the world.

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