![]() rental, we can find some tips in the verdict of the Court of Justice of the European Union C-42/14 (Minister of Finance vs. Is re-invoicing a separate service or is it part of a comprehensive service? It is not the case that the VAT rate should always be duplicated on the invoice / exemption from the original invoice. 2a of the VAT Act - we almost always use the rate thatwas on the original invoice! In a situation when we act on our own behalf but for someone else's benefit, there arises a casereferred to in Art. In such a situation, the party inthe water supply contract is most often the owner of the premises, who is also obliged to pay for its consumption, regardless of whether he will actually be reimbursed by the tenant who actually used the water. IMPORTANT acting on one's own behalf but for a third party means that entity A will be formally obliged to incur the expenditure, but in fact the service will be consumed by entity B.Ī typical example of such a situation is charging the costs of water consumption in rented premises. we are a party in a service contract and the service provider derives from us an obligation to provide money to him.Īcting on someone else's behalf means that the service cost paid by entity A is consumed by entity B. We act on our own behalf in a situation where we are obliged to bear the cost, e.g. When do we act on our own behalf and for the benefit of someone else? This applies to a situation where a taxpayer buys a service and then resells it "unprocessed" to its contractor. The "re-invoice" is therefore a simple VAT invoice issued by an intermediary between the relevant service provider and the actual buyer of this service. The purpose of re-invoicing is to transfer the costs incurred by the re-invoicing entity onto the entity that actually used the given services, despite the fact that the entity re-invoicing the given services did not perform them. Pursuant to this provision: When a taxpayer, acting in his own name but for a third party, participates in the provision of services, it is assumed that that taxpayer has received and provided the services himself.īy analyzing the content of this provision, we can easily come to the conclusion that it applies to a situation where, firstly: we act on our own behalf, and secondly: we act for the benefit of a third party.ĭetermining these circumstances is very important, not only from the point of view of how we tax the transaction, but whether it is taxable at all. The basic provision in this regard is ar. On own behalf and for the benefit of a third party In the Polish act on tax on goods and services (hereinafter: the VAT Act), there are provisions that partially show us how to proceed in the case of re-invoicing - they do not regulate the issue comprehensively. In order to perform this correctly, you need to answer a few questions that will provide information allowing the correct settlement of this transaction. One of them is a very common transaction, which consists in shifting the costs incurred by the entrepreneur onto another entity. Since 2016, we support companies in the scope of accounting, tax advice, as well as payroll and HR. Thanks to one of the most open European economies, entrepreneurs may count on a favorable place to invest. Through cooperation with proven suppliers of accounting services, VAT compliance, as well as tax advice, we support companies in expanding their business activity in the Central and Eastern European region. We will support your company in entering the Romanian market, and in growing your existing business. Since 2016, we support our clients by offering payroll-HR services, accounting, tax advice, and tax compliance. ![]() We will help you utilize the potential of the Czech market and expedite your company’s expansion. Since 2017, our team supports entrepreneurs in the scope of accounting, payroll and HR, and tax advice. Instead of multiplying costs by having one provider per country, collaborate with us! We will help you unleash regional synergy by reducing unnecessary costs and speeding up processes. Our offices are in: The Czech Republic, Romania, Hungary, and Slovakia. ![]() Are you planning business expansion beyond Poland?Ĭhoose KR Group - one professional service provider in the CEE region.
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