Polish VAT exemption provision cannot restrict rights under the VAT Directive – ruling of the Regional Administrative Court
Services closely related to vocational training may be exempt from VAT even when provided by an entity other than the training organiser. This was the position taken by the Regional Administrative Court in Wrocław in its judgment of 6 August 2026.
Services closely related to vocational training may be exempt from VAT even when provided by an entity other than the training organiser. This was the position taken by the Regional Administrative Court (WSA) in Wrocław in its judgment of 6 August 2026 (case no. I SA/Wr 249/26).
What was the case about?
The company, acting as a subcontractor, provided supplementary services in connection with vocational training courses financed at least 70% from public funds. These services included, among others, training evaluation, verification of learning outcomes, and activities related to knowledge transfer and retention.
The tax authority (KIS) refused to apply the VAT exemption, citing Article 43(17a) of the Polish VAT Act. This provision makes the exemption of services closely related to a principal service conditional, among other things, on their being provided by the same entity that provides the principal service.
The Court: the restriction does not follow from the VAT Directive
The Court held that such a restriction is inconsistent with Article 132(1)(i) of the VAT Directive (2006/112/EC). The Directive provides an exemption for vocational training and services closely related to it, but does not make this exemption conditional on the identity of the entities providing the principal and ancillary services.
In the Court’s assessment, Article 43(17a) of the Polish VAT Act therefore constitutes a defective implementation of EU law and cannot serve as grounds for restricting a taxpayer’s right to the exemption arising from the VAT Directive.
Significance of the ruling
The judgment confirms that domestic VAT exemption provisions cannot narrow the scope of the exemption provided for in the VAT Directive. The Court’s position aligns with an earlier ruling of the Supreme Administrative Court (NSA) of 7 February 2024 (case no. I FSK 268/20), which likewise questioned the compatibility of this restriction with EU law.
Do you provide subcontracted services for vocational training courses?
If you are wondering whether your company may be entitled to a VAT exemption for services closely related to vocational training, get in touch with our VAT team.