ECJ: Case No. C-697/20 (Dyrektor Izby Skarbowej w L.) – The European Court of Justice has issued a preliminary ruling on Polish VAT rules for agricultural activities.

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On March 24, the European Court of Justice (ECJ) issued a preliminary decision in Case No. C-697/20 simplifying the Polish VAT laws for agricultural activities.  




The taxpayers are legally married who owned poultry houses together but ran their businesses independently. One spouse filed a VAT registration declaration, relinquishing the former flat-rate farmer status, as well as VAT corrective applications, claiming an overpayment.  


The Polish tax office declined the application due to the taxpayer waived flat-rate farmer status for all agricultural properties, including her spouse’s.  


The European Court of Justice ruled that the common VAT system:  


  1. Does not preclude spouses engaging in separate economic activities on marital community property from being taxed separately; and
  2. Does not preclude one spouse losing flat-rate farmer status because of the actions of the other spouse if it is necessary to prevent tax evasion or administrative difficulties.  



Source: eur-lex.europa.eu 

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