The term “carousel fraud” refers to a characteristic scheme in which goods, after passing through a series of related entities, ultimately end up back at the original supplier. This mechanism allows perpetrators to conceal the actual transaction and generate undue tax benefits, most often by fraudulently obtaining VAT refunds or avoiding their payment. A key feature of VAT is its neutrality, so it should not impose an additional burden on taxpayers who do not consume the purchased goods or services but use them for business purposes. However, the structure of this tax makes it particularly vulnerable to abuse. In accordance with the principle of the free movement of goods, the supply of goods between European Union (EU) countries is subject to a 0% VAT rate. VAT carousels involve the use of complex transaction mechanisms embedded in the value added tax structure to avoid paying output tax or to unlawfully obtain a refund. These activities take the form of fictitious economic transactions, which involve the apparent movement of goods between entities located in different Member States. This can be very high, especially with relatively small financial outlays by the fraudsters, as the fraud involves goods that are repeatedly exported and returned to Poland.
A family foundation is a legal structure that builds an organizational structure aimed at securing family assets. It acts as a kind of treasure trove for the founder, protecting his family and business from accidents. Such foundations are popular in other countries such as Austria, Liechtenstein, Germany and Switzerland. A family foundation operates on the basis of a statute (and any regulations), with the founder having a great deal of freedom in determining the principles of its operation. Thanks to the flexibility in shaping the foundation structure and favorable taxation rules (the effective rate is about 13%), it is a tool ideally suited to the expectations of entrepreneurs who have long advocated for the introduction of such a solution in the Polish legal system. The interested party (the founder) is able to draw up a will as well as to establish a family foundation during their lifetime, which will manage their assets.
On 30 July 2025 our lawyers participated in the meeting of Polish Investment and trade Agency devoted to new opportunities and tools of Ukraine Reconstruction.
The Polish Investment and Trade Agency (PAIH) is a government agency subordinate to the Polish Development Fund (PFR). It focuses primarily on supporting Polish companies in their international expansion and attracting foreign investment to Poland. It operates in two main areas: first, it supports Polish companies abroad. Primarily, it helps Polish entrepreneurs find business partners, supports the export of goods and services, advises on entering new markets, and organizes trade missions, fairs, and promotional events. Furthermore, it seeks to attract foreign investors by promoting Poland as an attractive investment destination, assisting them in finding a location, obtaining permits, and navigating Polish law.