Advance payments affect the VAT small taxpayer status in Poland

• The amount of advances received affects the VAT status of small taxpayers in Poland.
• The value of sales that determines whether a taxpayer can settle VAT once a quarter must also include the amounts of advances received.
• A court case involving a developer company and its customers’ advances on commercial properties led to the question of whether these advances should be included in the calculation of the company’s sales value for VAT purposes.
• The National Tax Information Director confirmed that these advances should be included, as they represent payment for goods to be delivered in the future.
• The court agreed with this interpretation, stating that it would be inconsistent for the tax obligation to arise from the receipt of advances but not be included in the sales value for VAT purposes.

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.

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