– As a result of a customs and tax inspection concerning compliance with tax law provisions on goods and services tax for 2016–2017, it was established that the audited activity in the clothing, electronics and household appliances sectors was used to defraud VAT on the basis of TAX FREE documents issued. An analysis of the TAX FREE documents issued revealed that the audited entity did not meet the conditions for applying the 0% VAT rate in its tax settlement – informs Agnieszka Rzeźnicka-Gniadek, spokesperson for the Lower Silesian KAS.
She adds:
The irregularities identified in the tax settlement consisted of overstating input tax by more than PLN 1 million by deducting tax from fictitious invoices for clothing purchases, and understating output tax by nearly PLN 3 million by reporting, under the TAX FREE procedure, sales documented with fiscal receipts and TAX FREE documents issued in the names of fictitious or front persons from outside the European Union.
The total amount of underreported goods and services tax exceeded PLN 4 million. As a result of the inspection, a notification was filed concerning a justified suspicion of tax fraud, which initiated an investigation by the prosecutor’s office.
The case was handled by the Lower Silesian Customs and Tax Office in Wrocław.