On 25 February 2020 Provincial Administrative Court in Warsaw in case III SA/Wa 1390/19 issued a judgment whereby it was repealed against the client Russell Bedford an individual interpretation. This is another winning case for the client Russell Bedford.
The case concerned VAT exemptions for alternative investment fund management services and collective securities portfolios. The Director of National Tax Information considered that tax exemptions are granted only to activities that include the management of investment portfolios or risk management.
The taxpayer, who argued that the administration of an alternative investment fund should also be regarded as the management of an alternative investment fund, disagreed with this position. Such services shall be exempt from VAT if they are provided to investment funds.
In the case of alternative investment funds, the Director of National Tax Information denied the right to treat such activities as management and consequently considered it to be an incorrect position, which shows that those activities should be exempt from VAT on the basis of Article 43(1)(12) VAT Act.
This position was not agreed by the Provincial Administrative Court in Warsaw, which repealed the contested individual interpretation by judgment. The Court of First Instance pointed out that this ruling was another judgment issued by the WSA in Warsaw regarding VAT exemption for alternative investment fund management services. In the oral recitals of the judgment, the court indicated that similar decisions had already been taken before administrative courts.
This success shows the legitimacy of subjecting tax authorities to judicial and administrative control.
0114-KDIP4-4012.9.2019.1.RK
Author: Mikołaj Stanisławski
From 2017 related to the firm Russell Bedford Poland. In 2007 graduated from the Faculty of Law and Administration of the University of Warsaw. In years 2008-2011 he made an attorney's application. From 2011 entered on the list of lawyers at the District Bar Council in Warsaw. In 2016 He graduated from the Postgraduate Tax Studies and Tax Law of the University of Warsaw. Specializes in tax and tax matters.