It should be now easier for taxpayers to determine properly when VAT becomes chargeable for provided construction services and construction and assembly services. Doubts in this regard have been cleared by the Minister of Finance in his general binding ruling issued on 1 April 2016 (ref. no. PT3.8101.41.2015.AEW.2016.AMT.141).
The Act of 13 May 2016 amending the Tax Regulations and certain other laws, of which we already wrote in our March Newsletter, was published in the Journal of Laws of 14 June 2016, item 846. The tax law circumvention rule will be an important tool for tax authorities in the fight against financial abuse and aggressive tax optimisation.
Application of the exemption connected with the activities conducted in a special economic zone within strictly defined timeframes
Taxpayers planning to conduct business activities within a special economic zone should take into account that they will not be able to freely defer the moment of applying the exemption, e.g. by the time of deducting tax losses carried forward. According to tax authorities, the regulations clearly indicate the timeframes within which a company operating within a special economic zone is to apply the exemption.