CJEU opens door for companies to recover overpaid VAT. Robert Jaszczuk shares his opinion for International Tax Review.

CJEU opens door for companies to recover overpaid VAT. Robert Jaszczyk shares his opinion for International Tax Review. 

Companies could be in line to pursue challenges against the Polish tax authority to recover overpaid VAT following an EU court ruling. 

Businesses could be in line to take legal action against Polish VAT overcharges following an EU court judgment on double taxation of chain transactions. It follows a July 7 judgment by the Court of Justice of the EU (CJEU) in a Polish case (C-6 96/2o) involving chain transactions. The court held that the National Revenue Administration (KAS) was wrong to apply a double taxation rate of 46% on chain transactions. This violated the principles of neutrality and proportionality in the application of EU VAT regulations. 

Comment of our expert, Robert Jaszczuk, Partner, for International Tax Review. 

The number of cases that could be brought before the Polish courts on the issue of double taxation in chain transactions could be significant. Local or European tax directors that had similar cases in Poland can also restore their past proceedings and attempt to recoup VAT refunds that were unduly paid to Polish tax authorities. I would say the claims by companies could potentially be in the tens or even hundreds of millions of euros.

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