This time the case related in particular to the VAT point after the change of law, in two different legal environments. Even the Provincial Administrative Court itself admitted that the case was complicated. It ended with a precedential judgement. We have won.

The litigation resulted from an adverse decision issued in the case by the Director of the Fiscal Chamber in Wrocław in respect of our client. Its essence was about which provisions should be applied to the specific facts of the case after the change of law. The case was further complicated by the absence of transitional provisions and by contentious formal issues (e.g. previously won litigation concerning the breach of law while issuing an order of immediate enforceability).

The tax authorities found that it was the old legal environment that should have been applied, which meant for our client the necessity to tax their services at the rate of 22% rather than having them taxed at the place of the purchaser’s registered office. The case was further complicated by the fact that the Director of the Fiscal Chamber based his decision on the general interpretation issued by the Minister of Finance.

In the end, however, we managed to persuade the Provincial Administrative Court in Wrocław to accept our arguments almost within the entire scope of the appeal (including the potential conflict of the disputed interpretation with the Constitution). The judgement that was delivered was favourable to our client and reversed the decision of the Fiscal Chamber Director. It gives us hope that the outcome of the litigation will be positive, and that it will ultimately be found that the services concerned were not subject to VAT in Poland at all.

We are extremely pleased that the Provincial Administrative Court in Wrocław has clearly resolved the systemic issues, and that the firm reasons for the ruling are of a precedential nature. The judgement is not final.

The client was represented before the court by Rafał Olesiński, attorney at law. The appeal was prepared by a large team dedicated to the client.