The tax authorities’ clumsy efforts to tackle VAT abuses may destroy the biofuel sector – warns “Rzeczpospolita”.
Although the tax authorities succeeded in stopping the plague of VAT abuses in steel and electronics trade, the swindlers have bow shifted their Focus to rapeseed oil. They take advantage of the difference in tax rates: 5 percent for the oil intended for consumption and 23 percent for technical oil.
Both kinds are fit for consumption, but criminals artificially change the classification, and therefore the tax rate. They profit from the return of the difference between the rates.
In 2012-2015, the fiscal control offices uncovered abuses related to VAT for oil for a total sum of over 1 bln PN. Sadly, they combat not only abuses, but also law-abiding entrepreneurs.
They are accused of fake rapeseed oil acquisition. Meanwhile, these companies are usually the so-called “tax storages”, where every transaction is meticulously documented and supervised by customs officers. However, the tax authorities refuse to accept this and treat the transactions recorded in customs registers as if they had never taken place, therefore refusing to accept them as grounds to grant a VAT deduction.
The industry demands that the Ministry of Finance unify the VAT rate and introduce the so-called “inverted VAT calculation”. The latter mechanism has significantly restricted the scale of abuses in the steel and electronics sectors. The Ministry of Finance clearly states: there will be no inverted VAT for rapeseed oil. – The imposition of additional tax by the fiscal authorities is a threat to the financial liquidity of the aforementioned companies and may even contribute to the destruction of the very promising sector of the Polish industry producing raw materials for biofuels – assesses Mariusz Korzeb, tax adviser and expert of Employers of Poland.