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Receipt of an advance payment confirmed with an invoice
The receipt, before goods are supplied or a service is fully performed, of the whole or part of the payment (among others – a payment on account, an advance payment, a deposit or an installment), generally results in the obligation to pay arising on the moment of its receipt with...
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Obligation to pay in VAT when performing continuous services
In general, continuous services are considered as performed on the lapse of the period to which payments or clearings will apply. The notice of ‘continuous services’ is not defined in VAT regulations. In practice, however, it is assumed that they are services performed constantly, for a longer period of time.
Settlement of corrective VAT invoices
A corrective invoice must be, as a rule, be issued by the taxpayer in cases where, after the invoice had been issued, a discount or a rebate was granted, goods were returned, the payment was refunded in whole or in part, the price was increased or if a mistake was...
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Limiting the potential for tax avoidance
On the 26th June parliament voted for an amendment to the regulation of taxation for foreign subsidiaries of Polish natural and legal people, which serves the purpose of limiting the potential for tax avoidance. These foreign subsidiaries must pay 19% income tax to the Polish Treasury, if the mother enterprise...
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A company car – changes in accounting for VAT from 01 April, 2014
From 01 April, 2014 new rules for calculating and accounting for VAT on expenses regarding automotive vehicles, with an allowable total weight not exceeding 3.5 tones shall apply. The new regulations intend to limit the right to account for VAT in the instance of automotive vehicles which are being used...
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Companies need only electronic signature for the tax authorities
As of 2015, private individuals and legal entities will be able to submit their tax returns electronically. Business entities that must submit to the tax authorities a declaration of income and corporation tax, but will need a qualified electronic signature. The technology for this secure electronic signature costs between 110PLN...
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The right to deduct VAT for the Intra-Community acquisition of goods
Starting on 01 January, 2014 the right to deduct VAT calculated for the Intra-Community acquisition of goods (WNT) arises on general rules. The taxpayer may deduct VAT in the settlement for the period in which, for goods purchased by the taxpayer, the tax liability arose. However, it should be noted...
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Penalties for not submitting information about company car
Those tax payers who use their vehicle/s for business purposes only and keep a logbook/s for the vehicle/s may be able to deduct the entire VAT. The with holding of information about their vehicle/s with the full deduction at the tax office, will be subject to fine penalties, or even...
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New income limits regarding, among others, the status of a small taxpayers
As of 01 January, 2014 new higher income limits regarding, among others, the status of a small taxpayers, which are not obliged to keeping the accounting ledgers. The status of a small taxpayer (PIT, CIT and VAT) shall be kept by companies whose income value from the sale achieved in...
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New rules for additional taxation of foreign controlled companies
The Polish government recently announced a revised draft with new provisions for the additional taxation of foreign controlled companies in the Corporation Tax Act and the Income Tax Act, in respect of taxes on corporations and individuals respectively. The definition of “real economic activity” or “real business” In contrast to...
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