Overview of CJEU'S Polish cases of importance in 2021

The year is coming to an end and it is time to wrap up.

Year 2021 was full of tax changes, most of which are going to take effect at the start of 2022. For business, then, next year will be one of implementing the changes and adjusting to the new reality.

However, the quality and pace of the reform have given rise to controversies resulting in a host of Polish cases dealt with by the Court of Justice of the European Union (CJEU) in 2021.

CJEU resolved a number of long-time doubts surrounding the interpretation of extremely important VAT issues. The most important of these are summarised below:

• applicability of reverse charge mechanism in a VAT-neutral manner where the three-month time limit for deduction of input tax has passed (case C-895/19‚ judgment of 18 March 2021);
• availability of the right to invoice adjustment during a tax inspection if the taxable person acted in good faith to treat his transaction in accordance with the tax authorities' approach applicable at the date of the transaction (case C-48/20, judgment of 18 March 2021);
• ban on automatic imposition of additional VAT (so-called VAT penalty) due to its incompatibility with the principle of proportionality (case C-935/19, judgment of 15 April 2021);
• availability of reduced 5% VAT on sale of meals if the consumer himself chooses whether to consume the meal away from the premises or on the premises at a restaurant or in a shopping centre using resources provided for the purpose (case C-703/19‚ judgment of 22 April 2021);
• no need fortaxable persons to pay VAT due on purchase of fuel via ICA if the tax has not yet become chargeable as appropriate for transactions of this kind (case C-855/19, judgment of 9 September 2021).

You are warmly welcome to read the details of those cases and their impact on business in Poland here.