In August 2020 Warden of the Mazovian Tax Office in Warsaw ruled that the tax proceedings represented by our law firm should be terminated to determine the tax liability of the company for the various months 2016 and 2017
As a result of these decisions our client received a return above two one million gold retained VAT, including interest.
In the tax audit protocol, the warden considered that the services provided by the company outside the country did not take place and the invoices issued did not reflect the transactions actually concluded. The control protocol therefore concludes that the sales of goods shown on invoices issued by the controlled company took place in the territory of the country and are subject to VAT 23%.
The company disagreed with such findings of the tax authority and with our help raised extensive reservations about the protocol. At the same time, we have led to the addition of evidence and the acceptance and conduct of a number of evidence, both from witnesses and documents.
After extensive evidence in tax proceedings, the chief of office acknowledged to the taxpayer and discontinued the proceedings tax. More importantly, the tax authority indicated in its statement of reasons that the taxpayer had proved that he had performed the services previously contested.
The analysis of the evidence collected did not allow the tax investigation authority to assume that in the present case no delivery services were provided by the controlled company to its counterparties in the framework of services provided outside the country.
Therefore, there were no arguments to challenge the manner in which the company was shown in its declarations. VAT-7 settlement of these transactions.
Importantly, by agreeing to the taxpayer’s argument, the Authority also took into account the specificity of the industry in which the controlled company operates. The Authority also acknowledged to the taxpayer that this cannot be known by the entities from which the goods are purchased by its counterparties, since information on the source of the acquisition of the product in question is a commercial secret of each trader.
We are happy for success and waiting for the next good news.
The case was led by Mr. Monika Pindziak-Dutkiewicz together with the team from the Katowice office Russell Bedford Poland Sp. z o.o.