- The Provincial Administrative Court in Rzeszów issued a judgment on August 24, 2023, regarding a case about the VAT taxation of the supply of goods in exchange for an advertising service.
- The case involved a company that sells footwear and cooperates with influencers for advertising purposes.
- The company provided its products to influencers in exchange for advertising services.
- The company applied for an individual interpretation and asked if it had the right to deduct VAT on the transferred footwear and if it should charge VAT on the transfer of footwear.
- The authority agreed with the company’s position regarding the first question but disagreed with the second question.
- The company filed a complaint against this interpretation, but the Provincial Administrative Court dismissed it and confirmed that cooperation based on a barter agreement, under which the company transfers goods to an influencer in exchange for advertising in social media, is subject to VAT.
Source MDDP
