VAT tax (part 6) - tax base part AND


The VAT Act describes in detail the rules related to VAT settlement. Including the tax base, which is devoted to section VI of the Act.

Method of determining the tax base

As a rule, the tax base is turnover. The key question then is what we mean by turnover. It is the amount due for the sale, i.e. the gross value less the amount of VAT due. The amount due covers the entire benefit due from the buyer or a third party.

If the taxpayer received an advance, down payment, prepayment or installment before the transaction (goods delivery or service provision), then the turnover and thus the taxable amount is the amount received, less the amount of VAT due.


Therefore, taxpayers who received prepayment are required to issue advance invoices, on the basis of which they show the value of the tax due. Importantly, the advance payment received is a gross value, so the tax value is calculated using the "in one hundred" method.


The taxpayer assessed the value of the service provided at PLN 5,000. Implementation will take place on June 1. On May 6, the contractor made a prepayment of PLN 2,000. Therefore, the taxable amount will be PLN 1,626.02 on the date of receipt of the advance payment.

2,000 / 1.23 = PLN 1,626.02 - net value

PLN 373.98 - VAT amount

At the time of the service, on June 1, the remaining part of the turnover in the amount of PLN 2,439.02 will be taxable. The value of the VAT due will be PLN 560.98.

3.000 / 1.23 = PLN 2439.02 - net value

PLN 560.98 - VAT amount

Direct and indirect subsidies

Pursuant to the VAT Act, the turnover is increased by the received subsidies, subsidies and other payments of a similar nature that have a direct impact on the price (amount due) of goods or services provided by the taxpayer. At this point, however, it is about such services that have a direct impact on the price of goods and services provided by the taxpayer. Therefore, no other grants will be traded.

The Director of the Tax Chamber in Warsaw, in the individual ruling IPPP3 / 443-440 / 12-2 / MPe issued on June 27, 2012, specified which subsidies and subsidies will increase the tax base:

"(...) the inclusion in the taxable amount of goods and services tax of subsidies, subsidies and other surcharges of a similar nature takes place only if it is a special subsidy, subsidy or other surcharge of a similar nature directly related to the supply of goods or provision of a service The tax base includes only such subsidies, subsidies and other payments of a similar nature, which are intended directly to subsidize the price of a specific good or a specific type of service. of the taxpayer, not related to the delivery of goods or the provision of a service. tax base with tax o d goods and services. In order to determine whether or not the given subsidies have a direct impact on the price of the services provided, and thus whether they are subject to taxation, it is therefore important to have specific conditions for their awarding, which define the objectives of the subsidy provided in a specific form.

Thus, the tax base for value added tax is increased only by those subsidies that are absolutely and directly related to a given supply of goods or services. If, however, there is no such direct link, the general grant - to cover operating costs - is not taxable. (...) "

Barter exchange

The barter agreement involves a non-cash settlement. It is an exchange of a service for a service, a good for a good or a good for a service and vice versa. In such a transaction, money is not involved at all as a medium of exchange, and the goods or services must have a similar value.

Therefore, a question may arise whether barter trade also requires VAT taxation? The answer is yes. Pursuant to Art. 29 sec. 3 of the VAT Act, if the amount due is determined in kind, the taxable amount is the market value of the goods or services less the tax amount. Each party to a barter exchange is obliged to determine the tax base and VAT settlement as in the case of normal sales.

Importantly, if the barter exchange is made between two economic entities that are VAT taxpayers, they are obliged to issue invoices documenting the sale.

Free benefits

Pursuant to Art. 8 sec. 2 points 2 of the VAT Act, the free provision of services for the personal purposes of the taxpayer or its employees, including former employees, partners, shareholders, shareholders, members of cooperatives and their household members, members of the governing bodies of legal persons, members of the association, and any other provision of services free of charge for purposes other than the taxpayer's business activity. In this case, the taxable amount is the cost of providing these services incurred by the taxpayer.