By judgment of August 25, 2026, the Provincial Administrative Court (WSA) in Rzeszów set aside the decisions of the Customs and Tax Office (UCS) that questioned our Client's right to deduct input VAT in connection with goods transactions, which had resulted in the assessment of multi-million PLN tax arrears in VAT.
The administrative court agreed with our position that the tax authorities failed to properly establish the factual circumstances pertaining directly to the taxpayer, focusing almost exclusively on irregularities at earlier stages of trading in the goods concerned.
The court emphasized that in order to effectively challenge a taxpayer's right to deduct input VAT, the authority must clearly demonstrate and prove either that specific transactions did not take place or that the taxpayer failed to exercise due diligence when verifying its counterparties.
This marks another stage in our dispute with the tax authorities, which has been ongoing for over seven years. The tax decisions issued in the case were first set aside by the WSA in Rzeszów in September 2023, but that judgment was appealed to the Supreme Administrative Court (NSA).
The tax authority's cassation appeal proved unsuccessful, and the case was remanded for reconsideration to the tax authority, which issued new decisions that were essentially identical in substance to those previously issued. The WSA in Rzeszów has now set aside these new decisions as well.
The proceedings are handled by SPCG Partner – Agnieszka Soja.