Tax law, case I FSK 1520/09

March 15th, 2010, Tomasz Rychlicki

The Supreme Administrative Court in a judgment of 10 March 2010, case file I FSK 1520/09 held that the free of charge transfer of advertising materials for purposes related to operating a company is not deemed as supplying the goods and therefore not subject to value added tax as defined in article 7(2) and (3) of the Act on Goods and Services Tax – GSTA – (in Polish: ustawa o podatku od towarów i usług) of 11 March 2004, Journal od Laws (Dziennik Ustaw) No. 54, item 535.

Article 7.
1. The supply of goods, referred to in Article 5.1.1, shall mean the transfer of the right to dispose of the goods as owner, including also:

1) transfer under an order made by a public authority or an entity acting in the name of such an authority, or transfer in pursuance of the law, of the ownership of the goods against payment of compensation;

2) release of goods under the tenancy, lease or a similar contract concluded for a definite period of time, or a credit sale contract, if the contract provides that in the normal course of events envisaged in that contract or upon payment of the last instalment, ownership shall be passed;