Free online invoicing software
with KSeF support
For many years, a large proportion of tax authorities firmly maintained that choosing a taxation method correctly required a separate written declaration from the taxpayer. Recently, however, this approach has gradually changed thanks to several important administrative court judgments. This article describes the latest such judgment, which clearly establishes that indicating the chosen taxation method in a transfer description, for example by mentioning the form code appropriate to that method, fulfils the written-declaration requirement and is therefore sufficient and effective.
Can a transfer description constitute a taxation choice? Is a separate declaration necessary?
The latest ruling on an effective form of taxation choice is the Provincial Administrative Court in Gliwice judgment of 25 June 2025, case I SA/Gl 1486/24.
The case concerned a taxpayer who earned their first business revenue in February 2022. They made their first tax transfer in March 2022, using the PPE form code appropriate to lump-sum taxation of recorded revenue. They filed no separate declaration, being certain that a properly described transfer was sufficient to express their choice of taxation method.
To confirm this, the taxpayer nevertheless applied for an individual tax interpretation.
To their surprise, on 17 September 2024, the Director of the National Tax Information issued interpretation 0113-KDIPT2-1.4011.487.2024.1.MAP, finding the taxpayer's position incorrect.
The Director emphasised that tax regulations, both before 1 July 2021 and afterwards, did not and do not permit an implied choice of taxation method, such as making a payment with a particular description.
The taxpayer appealed this interpretation to the Provincial Administrative Court in Gliwice...
Accounting that understands your business
Leave your email address and receive guides supporting your business’s growth once a week
The Gliwice court: a form code in a tax transfer description constitutes an effective choice of taxation method
The Gliwice court agreed with the taxpayer's objections concerning the permissible form of a declaration choosing taxation.
The court referred to the relevant provisions, which state that choosing a taxation method, here lump-sum taxation of recorded revenue, requires:
- Submitting a declaration of intent choosing the taxation method to the tax authority;
- Making that declaration in writing;
- Observing the submission deadline.
The court had no doubt that the taxpayer had declared their intention to choose a taxation method. In the tax transfer instruction for the first month of business, they expressly specified the PPE form code, applicable exclusively to lump-sum income tax on recorded revenue.
The court also considered the written-form requirement fulfilled. In the absence of a statutory definition of “making something in writing”, its ordinary meaning should apply: the taxation-choice declaration should use alphabetic characters to record a statement. The Gliwice court was certain this requirement is met when a tax transfer description specifies the form code appropriate to settlement under a particular taxation method.
This is not the first judgment stating that a tax transfer description may constitute a choice of taxation method!
As mentioned at the beginning, this is not the first ruling of its kind.
The Gliwice court itself cited earlier judgments where administrative courts expressed the same view.
These were the Warsaw Provincial Administrative Court judgments of 30 January 2025, case III SA/Wa 2278/24, and 19 December 2024, case III SA/Wa 1862/24, as well as the Gliwice Provincial Administrative Court judgment of 15 October 2024, case I SA/Gl 411/24.
It is also worth noting the Supreme Administrative Court judgment of 22 February 2024, case II FSK 710/21, which stated, among other things, that transfer confirmation has significant legal importance in tax law, and the written-declaration requirement for choosing a taxation method can be met by entering the declaration's content in the transfer description.
If you found this article interesting, explore our tax advisory services and read how we can help you:
Summary
Wondering which taxation method will be best for your business in 2025 and 2026? Contact us and benefit from our experts' comprehensive assistance today!
The TaxCoach accounting firm offers not only accounting but also a broad range of tax services, including:
· Tax optimisation for businesses;
Interested in this article?
Enter your email address and once a week you will receive practical materials and tips to help you grow your business.
Book a free consultation
Grow your business with accounting combined with advisory services:
or
