Job Discussion Forums

misteradventure · Joined: 18 Aug 2003 Posts: 246

I've picked up a corporate client who wants to deduct the cost of lessons from his taxes as a business expense. Familiar story.

Friend of mine is willing to generate an invoice for him (yes, I have to give him the money too, but it will all work out- he's paying my bills with it.)

My question is this: If he is issuing a bill for services, does he need a NIP or something on it? It is a non-EU based company, so they don't have such things.

I could also invoice him for goods, but would prefer to keep everything legit.

Your contributions are welcome.

Grrrmachine · Joined: 27 Jul 2005 Posts: 265 Location: Warsaw, Poland

Based on my post yesterday, this is why I was told I needed to form a company. Apparently companies can deduct classes against tax for educational purposes, but they need your company NIP to do this (personal NIP isn't good enough APPARENTLY - others will know more on this)

cezarek · Joined: 29 Aug 2005 Posts: 149

Unlike in Britain, private individuals cannot issue bills or invoices. Any 'economic activity' must be registered as such. Your friend can issue an invoice, however if his business is registered abroad, the payment must actually go abroad. It can't be Poland to Poland - to do that he would need a Polish entity company unless his company's economic activity is registered here.

One other possiblilty is that your client could pay for the lesson on the basis of an 'umowa o dzielo'. This way he could offset the cost against his tax and basically you would be a freelance employee. This wouldn't incur any extra cost for him. It would be taxable on your side, but frankly not by much since there is no zus and there is an allowance for travel/materials etc. If you prepare your own lesson materials (and can prove it) the tax is even less. PM me if you want a specimin contract.