Tax revolution. The tax authorities will no longer be so restrictive

The Supreme Administrative Court (NSA) again confirmed that the expenses incurred by YouTubers may constitute tax deductible costs.

As the Supreme Administrative Court pointed out, expenses such as the purchase of film equipment (cameras, microphones, drones), computer equipment (laptops, computers, monitors), professional film editing software, as well as travel costs related to the implementation of films – both in the European Union and outside – as well as accommodation or travel agencies services, may be basically qualified as tax deductible costs in accordance with art. 22 para. 1 of the Personal Income Tax Act (PIT).

– The lower courts of the lower instances shared this position, while the tax authorities incorrectly narrowed the definition of costs only to typically advertising expenses – notes Piotr Juszczyk in an interview with “Wprost”, the main tax advisor of Infakt.

An important judgment for YouTubers

According to the tax expert, the judgment of the Supreme Administrative Court is very important for YouTubers.

– This is good news for internet creators who, when operating on YouTube, often incur high costs of production and travel. At the same time, it is worth noting that, despite the court’s liberal approach, each expenditure must have rational economic justification and actually contribute to achieving revenues – emphasizes Juszczyk.

What will youtubers be able to throw in costs?

As the expert notes, the verdict raises many questions regarding its use in settlements with the treasury.

– Does this mean that youtubers can literally throw everything into costs? Can they, for example, consider as the cost of purchasing Termomix, because they record culinary films on it? Or can they treat a private yacht as the cost of renting a private yacht because they record a series of films about exclusive travels? What about buying clothes from famous designers, explaining that they need to look attractive in front of the camera? Will the purchase of a purebred dog that appears as a mascot of the channel also become a tax cost? – Juszczyk wonders. The expert emphasizes, however, that the more unusual the expenditure, the greater the risk that it will be questioned by the tax office.

Expert: “With a yacht carefully”

According to the expert, youtubers’ creativity in tax settlements can be as unlimited as their work, but it recommends caution.

– In the case of YouTubers, creativity may endless, but with dubious expenses the taxpayer must count on surrender or battles in courts. It is worth considering whether a given expenditure is actually related to business activity and what will happen to it after its use. While accommodation or airline is a one -time cost, the yacht is not anymore – notes Piotr Juszczyk and emphasizes that in such cases the tax authorities may have many questions.

– What next with such a yacht? Will it be used in our business or did it serve private purposes? Therefore, it is worth analyzing meticulously not only here and now, but the future. Each such cost must be meticulously justified before the tax office. Creativity is welcome in movies, but in taxes it is worth maintaining common sense – sums up the expert.