Foreign companies may be exempt from VAT payment under new regulation

Under a new regulation introduced by the Finance Ministry on July 1, certain foreign companies will be able to claim back their Value Added Tax (VAT) payments. The new regulation, which has found widespread support among EU member countries, enables a foreign company to recover the VAT it has paid on goods and services purchased in Poland, as long as it meets two requirements. First, the company must be a registered VAT payer in its home country, and secondly, it may not perform operations in Poland that are taxable. However, the second requirement does not apply to the transportation of goods or the storage of goods in customs. (Prawo i Gospodarka, p. 6) A.K.