The Voivodeship Administrative Court in Opole in its judgment of 18 August 2010 case file I SA/Op 215/10 held that copies of VAT invoices can be stored in electronic form, if the files are properly secured and readable and the storage system allows for the reproduction of such invoices in the paper format at the request of tax authority, in its original form.
Archive for: e-documents
Tax law, case I SA/Op 215/10
September 6th, 2010, Tomasz RychlickiTax law, case I SA/Wr 592/10
August 31st, 2010, Tomasz RychlickiThe Voivodeship Administrative Court in Wrocław in its judgment of 27 July 2010 case file I SA/Wr 592/10 held that the Directive 112 did not include the obligation to keep copies of invoices in the same form in which they were sent. Also § 21(2) of Regulation of the Minister of Finance on 25 May 2005 on the tax refund to certain taxpayers, the advance tax refund, invoicing, the storage of invoices and the list of goods and services, to which the exemptions from taxes on goods and services are not applicable (in Polish: Rozporządzenie Ministra Finansów z dnia 25 maja 2005 r. w sprawie zwrotu podatku niektórym podatnikom, zaliczkowego zwrotu podatku, wystawiania faktur, sposobu ich przechowywania oraz listy towarów i usług, do których nie mają zastosowania zwolnienia od podatku od towarów i usług), does not follow that restriction to the form in which to store invoice was associated with the way they have been sent to the customer or made available to. The Court also noted that the invoice should be issued in duplicate, but this does not mean that the invoice has to be kept identical in form, which is an invoice sent to the buyer. Invoice kept by the issuer and received by the buyer has to be identical in content and therefore the information contained on the invoice relates to the transaction.
Tax law, case I SA/Op 177/10
July 31st, 2010, Tomasz RychlickiThe Voivodeship Administrative Court in Opole in its judgment of 23 June 2010 case file I SA/Op 177/10, pointed to the lack of precision in the national legislation. The court stated that § 21(2) of Regulation of the Minister of Finance on 25 May 2005 on the tax refund to certain taxpayers, the advance tax refund, invoicing, the storage of invoices and the list of goods and services, to which the exemptions from taxes on goods and services are not applicable (in Polish: Rozporządzenie Ministra Finansów z dnia 25 maja 2005 r. w sprawie zwrotu podatku niektórym podatnikom, zaliczkowego zwrotu podatku, wystawiania faktur, sposobu ich przechowywania oraz listy towarów i usług, do których nie mają zastosowania zwolnienia od podatku od towarów i usług), does not provide that the limitation as to the form in which to store invoice is associated with the way they have been sent to the customer or have been made available in a different way. The VAC ruled that a literaly reading of the provisions included in Polish Regulation does not lead to the interpretation that if the invoice is made in a particular paper form, a copy must also be kept in the same form thereof.
Tax law, case ITPP3/443-52/10/JK
July 5th, 2010, Tomasz RychlickiThe Polish newspaper Gazeta Prawna reports in the article entitled “Faktury papierowej nie można przechowywać w formie elektronicznej” on the individual interpretation of the Director of Tax Chamber in Bydgoszcz of 17 June 2010 No. ITPP3/443-52/10/JK regarding e-invoices. The Director explained that there is no possibility to store electronic invoices, which were issued and sent to the contractor in paper form. The tax regulations do not provide that taxpayers can store documents, copies of sales invoices issued in paper form, in electronic form, with the possibility of printing only when the need arose. On the contrary, these regulations require the taxpayer to retain copies of sales invoices and correction invoices in the original form that was created at the time of issue of the originals of these documents. In addition, there is no legal basis for the application of such a mixed-mode, in which on the one hand the invoice would be issued in paper form, and copies of invoices to be kept in the electronic form.
An entrepreneur seeking to reduce costs associated with invoicing can sign invoices issued in the electronic form with the qualified electronic signature, and after prior approval obtained from the recipient of such a document, send it via e-mail, deliver it on a CD or other electronic medium. Such system of delivery of documents that also ensures its authenticity and integrity, not only reduce the cost of billing on the drawer side, but also reduce costs of customers of such entrepreneur, and will be in accordance with the provisions governing the matter of invoicing.
The Polish Ministry of Finance treats only two types of invoices as legitimate way of billing if they could not be received personally. These are paper invoices that one may send to its customer by post or courier, or electronic, not so popular, because to use it the entrepreneurs must pay for the so-called qualified e-signature.
The Polish newspaper Gazeta Wyborcza reports in its article entitled “Zabawa w zginanie faktur” that lots of companies in Poland send invoices by e-mail in the attached file (usually scanned), because it’s faster, more convenient and cheaper. One does not pay for stamps or envelopes. There is only one problem – the tax authorities believe that it is illegal activity. In the case of tax control, a company is threaten by financial penalties.
But Polish entrepreneurs have found a solution for such unrealistic approach. The invoice that was received by e-mail is printed and bend in half. It looks like it was taken out of the envelope. There is no provision in the tax law tha would require the storage of envelopes. The tax control is not able to prove that it wasn’t printed by the issuer of the invoice and send by post or courier. Almost everyone is happy.
The Ministry of Finance respects the decision of the Supreme Administrative Court that was described in the post entitled “Tax law, case I FSK 1444/09“, but it does not mean that the Ministry agrees with legal arguments presented by the SAC. The Republic of Poland is a civil law country and there are no binding precedents. It means the every entrepreneur would have to go the same way as the one whose case ended before the SAC.
See also “Tax law, case III SA/Wa 396/10“.
E-registry of mortgages
June 18th, 2010, Tomasz RychlickiOn 16 June 2010, the Polish Ministry of Justice introduced the Internet system of land registry/mortgages. It has now over 12.1 million of entries and the remaining 6 million is expected to be completed within two years. The Registry was introduced by the Regulation of the Minister of Justice on the establishment and operation of land registry in the computer system of 20 August 2003, Journal of Laws (Dziennik Ustaw) No. 162, item 1575 with later amendments. Browsing of a land/mortgages register is defined as a call on the monitor’s screen of the desired land register.
Tax law, case I FSK 1444/09
May 21st, 2010, Tomasz RychlickiThe Polish entrepreneur asked the Director of the Tax Chamber in Kraków, whether the inclusion in the billing of VAT of the amount of tax charged on the purchase of goods and services on the basis of invoices and correction invoices received by e-mail or fax, not in the form of electronic invoices with digital signature, is correct. The Director ruled that such interpretation is incorrect. The Company did not agree with this decision and filed a complaint to the administrative court. The Voivodeship Administrative Court (VAC) in Kraków in a judgment of 17 March 2009, case file I SA/Kr 97/09 dismissed the case. The Company filed a cassation complaint. The Supreme Administrative Court in a judgment of 20 May 2010, case file I FSK 1444/09, ruled that invoices that were sent via fax or e-mail are equivalent to these sent via traditional mail. What’s more important, such invoices do not need any electronic signature.
E-access to public information, case I C 19/10
April 29th, 2010, Tomasz RychlickiGrzegorz W. made a request for access to minutes of meetings of the audit committee of the city council. He requested that the information was sent to his home address. The Municipality and City Czerwionka – Leszczyny replied that it is possible to get acquaint with the requested documents in their virtual version that was published in the Bulletin of Public Information and there was also an option to obtain a photocopy or computer file upon application and payment of a fee based on the provisions of article 1(1) of the the Polish Act of 6 September 2001 on access to public information – API – (in Polish: Ustawa o dostępie do informacji publicznej) Journal of Laws (Dziennik Ustaw) No. 112, item 1198, with later amendments.
Each information on public matters constitutes public information in the understanding of the Act and is subject to being made available on the basis of principles and under the provisions defined in this Act.
Grzegorz W. informed the Municipality and City Czerwionka – Leszczyny that he expects to receive the documents in the form of photocopies. Documents were sent along with request for payment based on the rules issued by the Mayor on charges for making the public information available. Grzegorz W. refused to pay and urged the Mayor to amend the ordinance in question as it was incompatible with articles 7(2) and 15(2) of the API.
Article 7. 1. Making public information available takes place by means of:
1) announcing public information, including official documents, in the Public Information Bulletin, mentioned in Article 8,
2) making it available, mentioned in Articles 10 and 11,
3) entrance into the meetings of the bodies, defined in Article 3, it. 1, point 3, and making the materials available, including the audio-visual and tele-communicating, documenting these meetings.
2. Access to public information is free, with the stipulation of Article 15.(…)
Article 15. 1. If as a result of making public information on the petition, defined in Article 10, it. 1, the entity obliged to do this, is to incur the additional costs connected with the method defined in the petition of a method of making it available or necessity to transform the information in the form pointed in the petition, this entity is entitled to the payment from the petitioner covering these costs.
2. The entity, defined in it. 1, within 14 days of submitting the petition, shall notify the petitioner of the amount of the payment. Making the information available in accordance with the petition takes place after the expiration of the period of 14 days of notifying the petitioner unless the petitioner makes within this period the change in the petition in the scope of method and form of making this information available or withdraw the petition.
After very active exchange of letters and calls between both parties, the case went to court. On 7 October 2009, the Referee in the Regional Court Katowice Wchód in Katowice made the order in the admonition proceedings, case file I Nc 1140/09/13 and adjudged Grzegorz W. to pay 14,58 PLN plus costs of proceedings. Grzegorz W., filed an objection against the order and the Municipality and City Czerwionka – Leszczyny sustained their claims. The Regional Court Katowice Wchód in Katowice in a judgment of 27 April 2010, case file I C 19/10, PDF file, rejected all claims filed by the Municipality and City Czerwionka – Leszczyny. The Court held that article 7(2) of the API introduces the principle of free access to public information. All exceptions to this rule are provided in article 15(2) of the API. There are only two exceptions to the principle of free access. The first concerns the method (form) of making the information available and the second concerns a situation in which additional costs are associated with the transformation of the requested information. According to the Court, the forms should be understood by both the particular shape of the information held, which requires additional effort (for instance digitization and processing of documents held by the entity) and as a special way of making such information available. The Court also noted that the entity making the information available is obliged to ensure the possibility of copying of public information or its printout or sending the public information or transferring it to the appropriate, commonly used information carrier. The Court held that the Municipality and City Czerwionka – Leszczyny should also demonstrate that it had incurred additional costs. Finally, the Court also held that making the price-lists and introducing flat-rate charges for making the public information available, violates the provisions of the API because each price-list/tariff is a form of lump sum and this does not correspond to the essence of the costs actually incurred. Article 15(1) of the API indicates the additional costs and therefore the costs that were actually incurred by a given entity.
See also my post entitled “Polish case law on e-access to public information“.
Tax law, case III SA/Wa 396/10
April 18th, 2010, Tomasz RychlickiThe Voivodeship Administrative Court (VAC) in Warsaw in a judgment of 8 April 2010, case file III SA/Wa 396/10, ruled that there is no legislative impediment to the existence of a mixed system for the storage of invoices, which consists of sending an invoice in paper and storage of its electronic copies with the option to print at the request of a legitimate authority. Such an interpretation was corroborated by teleological considerations, environmental and economic. According to the VAC the different findings would lead to a breach of the principle of proportionality, as set out in article 5(3) of the Treaty on European Union.
3. Under the principle of subsidiarity, in areas which do not fall within its exclusive competence, the Union shall act only if and in so far as the objectives of the proposed action cannot be sufficiently achieved by the Member States, either at central level or at regional and local level, but can rather, by reason of the scale or effects of the proposed action, be better achieved at Union level.
The institutions of the Union shall apply the principle of subsidiarity as laid down in the Protocol on the application of the principles of subsidiarity and proportionality. National Parliaments ensure compliance with the principle of subsidiarity in accordance with the procedure set out in that Protocol.
Consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union, Official Journal C 83 of 30 March 2010. PDF files.
E-access to public information, case II SAB/Wa 86/07
February 20th, 2010, Tomasz RychlickiThe Voivodeship Administrative Court (VAC) in Warsaw, in a judgment of 10 December 2007, case file II SAB/Wa 86/07, held that the request filed in the electronic form (e-mail) that was not signed with the qualified electronic signature is a legally sufficient request for public information. Furthermore, the request for public information does not initiate the administrative proceedings and it is not intended to finalize the proceedings with the refusal. It is logical and obvious that applicant’s intention is to obtain information and not to receive a negative decision. The request for public information can take any form, unless it is sufficiently clear what is requested.
See also my post entitled “Polish case law on e-access to public information“.
E-access to public information, case II SAB/Sz 148/09
February 20th, 2010, Tomasz RychlickiThe Voivodeship Administrative Court (VAC) in Szczecin, in a judgment of 16 December 2009, case file II SAB/Sz 148/09, held that the general principle set in article 61 of the Polish Constitution, is the access to information on the activities of public authorities. Any exceptions to this rule should be formulated explicitly, and all doubts should be resolved in favor of the access.
Article 61
1. A citizen shall have the right to obtain information on the activities of organs of public authority as well as persons discharging public functions. Such right shall also include receipt of information on the activities of self-governing economic or professional organs and other persons or organizational units relating to the field in which they perform the duties of public authorities and manage communal assets or property of the State Treasury.
2. The right to obtain information shall ensure access to documents and entry to sittings of collective organs of public authority formed by universal elections, with the opportunity to make sound and visual recordings.
3. Limitations upon the rights referred to in paras. 1 and 2 above, may be imposed by statute solely to protect freedoms and rights of other persons and economic subjects, public order, security or important economic interests of the State.
4. The procedure for the provision of information, referred to in paras. 1 and 2 above shall be specified by statute, and regarding the Sejm and the Senate by their rules of procedure.
Judgments of the Polish courts are information on public matters according to provisions of article 1(1) of the f the Polish Act of 6 September 2001 on access to public information – API – (in Polish: Ustawa o dostępie do informacji publicznej) Journal of Laws (Dziennik Ustaw) No. 112, item 1198, with later amendments.
Each information on public matters constitutes public information in the understanding of the Act and is subject to being made available on the basis of principles and under the provisions defined in this Act.
The Court held that according to article 6(1) point 4 letter (a) of the API, a judgment is an official document that should be made available according to the procedures and principles set in the API.
Article 6(1) The following information is subject to being made available, in particular on:
(…)
4) public data, including:
a)contents and form of official documents, in particular:
- contents of administrative acts and other resolutions,
- documentation on the control and its effects as well as presentations, opinions, conclusions and statements of the entities having conducted the control,
The VAC also noted that anyone is allowed to request the access to public information in electronic form or in the traditional way, on paper.
See also my post entitled “Polish case law on e-access to public information“.
E-access to public information, case II SAB/ Wa 57/09
February 18th, 2010, Tomasz RychlickiIn 2008, the Polish media reported a story on the Polish Post which allegedly tested a system that scans envelopes and parcels. There were rumours that information gathered by such scanning could be used by the Internal Security Agency (ABW). ABW denied, but the Inspector General for Personal Data Protection has decided to investigate how the collected data are processed during the scan.
Roman P. has requested the GIODO to make available the results of the investigation. Since Roman P. filed his request by phone and then by e-mail, the GIODO informed that it will consider the request only after it receives personal data of Roman P.
The GIODO based its opinion on the provisions of article 63 § 3 of the Administrative Proceedings Code – APC – (in Polish: Kodeks postępowania administracyjnego) of 14 June 1960, Journal of Laws (Dziennik Ustaw) No 30, item 168, consolidated text of 9 October 2000, Journal of Laws (Dziennik Ustaw) No 98, item 1071 with subsequent amendments.
§ 1. Applications (requests, explanations, appeals, complaints) may be filed in writing or by telegram, telex, fax, email or by using the form available on the website of the competent public administration, allowing data entry into the communications system of the body, as well as verbally to the protocol.
§ 2 The application shall include at least an indication of the person from whom it comes, its address and it shall satisfy other requirements stipulated in the special regulations.
§ 3 The application submitted in writing or orally to the protocol shall be signed by the applicant, and also by an employee who made the protocol. When the application is filed by a person who can not or do not know how to make a signature, the application or a protocol is signed by other person authorized, by making a reference next to the signature.
The GIODO decided that the application filed by Roman P. shall indicate the person from whom it derives, its address and the scope of the request, otherwise, the request will not be examined.
Roman P. brought a complaint to the Voivodeship Administrative Court (VAC) in Warsaw. The VAC in a judgment case file II SAB/ Wa 57/09, ruled that the GIODO failed to act and ordered the Inspector General for Personal Data Protection to examine Roman P. request within 14 days because information he demanded, is deemed as the public information as defined in article 5(2) of the Polish Act of 6 September 2001 on access to public information – API – (in Polish: Ustawa o dostępie do informacji publicznej) Journal of Laws (Dziennik Ustaw) No. 112, item 1198, with later amendments. The Court also ruled that arguments and findings to leave the application without further examination, because it was sent by e-mail, have no support in the APC.
See also my post entitled “Polish case law on e-access to public information“.
Polish case law on e-access to public information
January 21st, 2010, Tomasz RychlickiBelow, you will find a list of judgments on e-access to public information. By “e-access to public information” I mean all issues related to obtaining public information through or with the help of IT technology. You can find a more detailed discussion on each judgment under the link provided with the case file. All judgments are given in chronological order.
- The judgment of the Regional Court Katowice Wchód in Katowice of 27 April 2010, case file I C 19/10.
- The judgment of the Voivodeship Administrative Court (VAC) in Szczecin of 16 December 2009, case file II SAB/Sz 148/09.
- The judgment of the Voivodeship Administrative Court in Warsaw, case file II SAB/Wa 57/09.
- The judgment of the Voivodeship Administrative Court in Warsaw of 10 December 2007, case file II SAB/Wa 86/07.
E-documents not so useful in pledges
January 21st, 2010, Tomasz RychlickiSince 18 January 2010, all copies of documents and certificates received from the register of pledges that are made in the electronic form and are signed with the secure digital signature, have the same validity as official document. Until now, such validity had been granted by the law only to copies and certificates issued on paper, and their electronic versions were deprived of this power. This situation changed as a result of recent amendments to the Act on the Registered Pledge and the Register of Pledges – RPRP – (in Polish: ustawa o zastawie rejestrowym i rejestrze zastawów) of 6 December 1996, Journal of Laws (Dziennik Ustaw) No 149, item 703, with later changes. However, as Judge Małgorzata Stryjecka (Warsaw) told to the Polish newspaper Rzeczpospolita, giving the power of official documents to electronic copies and certificates will not have too large impact on improving the procedures for the establishment and use of the register of pledges, as both the establishment of pledge, as well as documenting its expiry, requires the original documents.
E-promulgation of Polish law
January 5th, 2010, Tomasz RychlickiThe Act of 10 September 2009 on amending the Law on the promulgation of normative acts and some other legal acts, Journal of Laws (Dziennik Ustaw) of 2009, No 190 item 1473, came into force on 1 January 2010. According to the amendments, the Journal of Laws and the Polish Monitor or normative acts and other legal acts contained in them, including judgments, are made available freely for inspection and to download in the form of an electronic document from the website of the Government Legislative Center.
The minister responsible for informatization will also determine, by a regulation, the technical requirements to be met by electronic documents addressed for the announcement, containing normative acts and other acts, including judgments, taking into account the need to preserve the unity of supplied electronic documents and their possible transformation for the issue of the official journal.
Tax law, case I FSK 1169/08
August 31st, 2009, Tomasz RychlickiThe Supreme Administrative Court (SAC) in its judgment of 3 October 2009 case file I FSK 1169/08 did not share the views that the the Directive 112 provides the absolute obligation to keep copies of invoices in the same form in which they were sent. In the opinion of the SAC, the only thing that can be inferred from the Directive is that the copy of the invoice can be stored in paper or electronic form. It is also wrong to confuse the term “issue” and “send” with regard to invoices. The Polish legislator did not exactly implement standards resulting from the Article 27(2) of the Directive. The omission of the phrase “in which they were sent or issued”, leads to ambiguity in language interpretation of the law. There is no legislative impediment to the existence of “mixed” system for sending and storage of invoices. In addition, the SAC decided that the obligation to keep invoices on paper, where other methods of storage also enable the objectives of Article 246 Directive 112 to be fullfiled, is the excessive responsibility and violates the principle of proportionality.