After an optimistic sign which was a judgment of the Constitutional Court concerning free-of-charge benefits for employees, it's time for tax payers to adverse actions of tax administration. The Minister of Finance in letter dated 18 September 2014, no. PT8/033/86/539/PSG/14/RD84700 has changed, favourable to tax payers, ruling regarding VAT on additional benefits for employees (medical packages, multisport cards, etc.). According to the changed ruling, VAT was calculated on the price which an employee has paid to his / her employer. This price is usually much lower than the market value of the benefit. Minister has changed the tax ruling and stated that VAT should be calculated from the market price of the employee’s benefit and in this case the tax authorities may apply art. 32 of the VAT Act - by estimating the value of the benefit. Such approach may have serious consequences, providing the opportunity to correct VAT by the tax authorities for the last 5 years.
