- Y company operates an architectural office and owns a commercial property that was damaged in a flood
- Renovation work was carried out by company X, which issued an invoice for 123,000 PLN (including VAT: 23,000 PLN)
- The invoice included a “split payment mechanism” and was paid by company Y
- Company Y settles VAT and CIT based on general rules and pays VAT and CIT advances on a monthly basis
- Company should account for VAT on renovation work in accordance with the VAT Act, with the amount of tax due being 23,000 PLN
Source: podatki.gazetaprawna.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
