SLIM VAT - Settlement of credit notes 2021
SLIM VAT package
are solutions introduced to simplify VAT settlement. The solutions of the SLIM VAT package are to clarify and supplement some of the VAT provisions by removing unnecessary obligations that make running a business difficult. From January 01, 2021. as part of the SLIM VAT package, among others, changes in the settlement of correction invoices.
Tax relief - hypothetical interest on subsidies and retained profit
Hypothetical interest - what is it?
Hypothetical interest is a special tax relief for CIT taxpayers. It applies only to those taxpayers who have allocated the company's profit to reserve or supplementary capital or contributed to the company. This relief is based on the calculation of hypothetical interest that burden tax costs and reduce the tax. Hypothetical interest is a kind of incentive for companies to increase their equity capital. As a consequence, they are to lead to limiting the share of foreign capital in the structure of the company's financing sources.
Documenting WDT - changes in regulations in 2020
In order to apply the 0% rate VAT to intra-Community supply of goods, the taxpayer should have documents confirming the export of goods to another EU country. According to EU Council Implementing Regulation 2018/1912 of December 4, 2018. from January 01, 2020 in force presumption of exportation of goods to another EU country on the basis of having appropriate documentation.
Taxation of rental of residential real estate and re-invoicing for utilities
Taxation of real estate rentals
The rental of real estate is taxed at a rate of 23%.
Rental of real estate for housing purposes is exempt from VAT. The VAT exemption does not apply to accommodation services provided by hotels, motels and other hotel facilities (PKWiU 55), where taxation is 8% VAT.
Christmas gift - tax effects
Is the gift a tax deductible cost for the giver (provider)?
The purchase of a gift will constitute a tax cost, provided that the expenditure is incurred in order to generate income or to maintain or secure a source of income. In practice, this means that gifts should bear a company logo, of low value, and their delivery should be massively for advertising purposes (i.e. promoting the brand or products of the company). In addition, when input VAT on the purchase of gifts is not deductible, it is a tax deductible cost. In contrast, elegant and valuable gifts given to selected contractors and gift baskets in which we place branded sweets and alcohols are used to build or maintain good relationships and create a favorable image of the company, are representative and do not charge tax costs.