Table of Contents:
1. Current Legal Framework
2. How Will the Interest Be Calculated After the Changes?
According to the draft law adopted by the Government, taxpayers will receive interest on overpayments arising from rulings of EU or national tribunals for the period from the date the overpayment arose to the date of its refund. Thanks to amendments to the Tax Ordinance, taxpayers seeking full interest on their overpayments from the tax authorities will no longer need to rush to submit a refund application.
Current Legal Framework
Under the current provisions of the Tax Ordinance, there is a 30-day deadline from the date of publication of a ruling by the Court of Justice of the European Union (CJEU) in the Official Journal of the EU (if the case was adjudicated by the CJEU) or from the date of entry into force of a ruling by the Constitutional Tribunal. This is stipulated in Article 78 of the Tax Ordinance. After this deadline, the taxpayer’s situation with regard to overpayment interest significantly worsens.
How Will the Interest Be Calculated After the Changes?
The changes in the rules for calculating overpayment interest stem from the CJEU ruling of June 8, 2023 (Case No. C-322/22). The CJEU found that the Polish provision limiting interest on tax overpayments is inconsistent with EU law. Taxpayers are entitled to interest for the entire period during which the improperly collected tax was held.
As a result, the Tax Ordinance will ensure that interest is applied to overpayments arising from rulings of the CJEU and the Constitutional Tribunal from the date the overpayment arises until the date of its refund, regardless of when the refund application is submitted relative to the publication date of the rulings. The only limitation for taxpayers will be the statute of limitations on tax liabilities, after which taxpayers will no longer be entitled to interest or the refund of the overpaid tax amount.
