For years taxpayers have been using advertising agencies for purposes of distribution of gifts to their customers while maintaing the right for full deduction of VAT (including VAT on the value of the gifts). This scheme seems to be gone now. Polish courts, following the rulings of the European Tribunal, are changing thier minds and question the right to deduct VAT calculated on the value of the gifts. Recent ruling of the Supreme Administration Court dated June 26, 2014 (I FSK 1112/13) proves that the scheme may no longer be used.
