Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/6/2012

Poland - VAT treatment of cash bonus / discount payments 

December 6:   Poland’s Ministry of Finance issued guidance in late November 2012 regarding the value added tax (VAT) treatment of cash bonus (discount) payments.

The guidance—reference number PT3/033/10/423/AEW/12/PT-618 (27 November 2012)—generally confirms the government’s position on VAT treatment of cash bonus payments.


In general, each transaction is subject to VAT, calculated in proportion to the price charged by the taxpayer. This interpretation assumes that the cash bonus represents a discount when there is a direct link between the amount of the bonus paid and the supplies actually realized. According to the Ministry of Finance, such a link is present in situations when a cash bonus is paid for a certain level of turnover and when there is a cash bonus on timely payments of particular deliveries.


The Ministry of Finance guidance, however, indicates that the treatment of a cash bonus as a discount is not applicable if the purchaser receives a bonus mainly for providing certain activities to the supplier (such as applying a particular method of presenting the supplier’s products, or in exchange for a commitment to refrain from purchasing similar goods from other suppliers)


Read a December 2012 report [PDF 155 KB] prepared by the KPMG member firm in Poland: Tax Alert (December 2012)




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