The State Owes You Interest
For years, the equation was simple: you filed for VAT reimbursement, and you waited. Six months became twelve. Twelve became twenty-four. The Polish tax authorities processed claims at their own pace, and foreign investors had no recourse.
Milton Friedman observed that government has no money of its own—only what it takes from citizens. When that government holds your money longer than the law permits, it is not merely inefficient. It is taking what it has no right to take.
The Supreme Administrative Court has now confirmed what should have been obvious: delay has a price. And the Polish state must pay it.
Tocqueville on Administrative Power
Alexis de Tocqueville warned of “soft despotism”—a state that does not tyrannize but enervates, that does not destroy but prevents. A tax authority that holds your money for two years does not confiscate it—but it prevents you from using it.
The NSA ruling is a small check on this soft despotism. It says: there are limits. There are consequences. The state cannot hold private capital indefinitely without paying for the privilege.
The Bureaucratic Mind
Max Weber described bureaucracy as rule-bound rationality—predictable, impartial, efficient. The Polish VAT reimbursement system was none of these. It was slow, arbitrary, and consequence-free.
The NSA ruling introduces consequences. Tax authorities now face financial liability for delays. This changes the incentive structure: speed has value, because slowness has cost.
Whether this will transform practice remains to be seen. Bureaucracies are resilient. But the legal ground has shifted, and that shift matters.
What We Do
We assess your claim. Review of your VAT reimbursement history, calculation of delays, estimation of recoverable amounts.
We document the case. Assembly of evidence: applications, acknowledgments, payment dates, statutory deadlines. The paper trail that proves your claim.
We negotiate with authorities. Some claims may be resolved without litigation. We pursue the path of least resistance first.
We litigate when necessary. If the tax authorities refuse to compensate voluntarily, we take the case to court—armed with the NSA precedent.
We handle cross-border complexity. Foreign investors face additional hurdles: language, procedure, jurisdiction. We navigate these on your behalf.
Locke on the State’s Obligation
John Locke argued that government exists to protect property—not to appropriate it. When the state holds your VAT refund beyond the legal deadline, it appropriates your property without consent.
The compensation claim is not a windfall. It is restitution. It restores what should never have been taken—or rather, what should have been returned on time.
This is not about punishing the tax authorities. It is about aligning practice with law, and recognizing that the state is bound by the same rules it imposes on citizens.
In Closing: What Is Owed
The state held your money. The law said six months. The state took longer—sometimes much longer. The Supreme Administrative Court has ruled: that delay must be compensated.
This is not charity. This is not a favor. This is what you are owed.
We help you collect it.
