Recovering 124,300 PLN VAT for a transport company in 89 days
The client had funds blocked due to an incorrect interpretation of regulations on machine leasing. We took over contact with the office and corrected declarations for the last 18 months.
Logistyka Polska Sp. z o.o. from Radomsko found itself in a difficult financial situation due to an error in leasing settlements. The tax office blocked their access to over one hundred thousand PLN, which threatened the timely payment of salaries for 34 drivers. Simply put: money that should have been working on the routes was lying dead in the office account.
The challenge
The company manages a fleet of 23 tractor-units. The previous accounting office had incorrectly deducted VAT on leasing installments for mega-type trailers for 14 months. Officials challenged deductions for a total amount of 124,300 PLN, claiming that the technical documentation did not allow for a full deduction. The company had only 14 days to provide explanations before the case would go to bailiff enforcement. The company's cash reserves fell by 22.4% in one quarter.
Our approach
We started our work with an immediate audit of 412 leasing invoices and bank agreements. Our expert, Anna Wiśniewska, personally went to the Tax Office in Radomsko to review the case files. According to the letter of the law, we prepared a new argument based on judgments of the EU Court of Justice regarding specialized vehicles. We count every penny, so we also fought for the return of unduly charged late interest.
The solution
We prepared corrections to VAT-7 declarations for the last 19 settlement periods. We attached technical certificates for the trailers, which clearly confirmed their intended use for heavy transport. We implemented a new cost document circulation system in the company that automatically verifies GTU codes for leasing. Horyzont Finansowy took over all communication with the office, relieving the company owner of this duty.
Results
Within 89 business days, the office accepted our arguments and returned the entire disputed amount along with interest to the client's VAT account. Thanks to this, the company was able to finalize the purchase of two new Scanias without taking an additional working capital loan.
Timeline
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March 2024Audit of 412 invoices and verification of technical documentation of the fleet.
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April 2024Submission of 19 declaration corrections and explanatory letters to Radomsko Tax Office.
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May 2024Meeting with the head of the office and presentation of CJEU judgments.
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June 2024Funds received in the account and closing of proceedings.
"We were sure that this money was lost due to a paper error. Horyzont Finansowy pulled us out of the mud in less than three months. Concrete results, not promises."