VAT Grouping and Cost-Sharing Arrangements – The Polish Experience

Poland introduced the EU exemption for cost-sharing associations in 2011 and, indirectly, also the EU arrangements on VAT grouping became available to businesses in Poland. These concessions enable businesses to avoid or reduce the VAT costs of outsourcing activities. In this article, the authors present an overview of how those arrangements function in practice and how their scope is interpreted by the tax authorities and national courts.