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Monday, 23 July 2018

No more FREE MUSEUM NIGHT in Krakow?!

Dearest hearts,

The FREE MUSEUM NIGHT is very popular in every country and every city around the globe. Almost everyone has been a part of it once and it's truly quite a lovely thing to experience. But guess what?! You may have to forget about that when it comes to Poland, to Krakow. Perhaps next year you will have to pay to enter the event! The problem is a different interpretation of the tax regulations - not very favourable when it comes to the cultural institutions. In that light, the organisation of free events by the institutions will not be profitable. The case was delay by "Dziennik Gazeta Prawna" - so far the cultural institutions have been able to deduct the VAT (value added tax) in total from the expenses they incur in favour of the promotion. The Deputy Minister of Finance (in response to the Parliament questions) however, stated that such action is not acceptable. The institutions will be able to count up to several dozen prevent from 100% of the recovered tax. Experts recognize that the new  interpretation of regulations will hit primarily museums. 
Free Day ticket from Wawel Castle/Museum
In addition to the cyclical FREE MUSEUM NIGHT it may also be problematic to organise, for example, free festivals / workshops / prize galleries etc. Until 2016, it was clear that museums could deduct VAT from such events. Now the practice of the National Tax Chamber has changed. Settlements with pre-coefficient, most likely museums, will have to settle accounts with Fisk (Fiscal Dept.) using the so called "prewspolczynnika". This is related to the response of the Deputy of Ministry of Finance (Pawel Gruzy) in June 13th, to the Parliament interpellations number 22403, 22396 si 22230 + June 5th interpellation number 22098. The ministry decided that the FREE MUSEUM NIGHT could be treated as an economical activity. Until now the event was seen it in the context of promotional activity. The change in the interpretation of the regulation affects the need to modify the way museums settle this with the Fiscal Dept. Perhaps from the new year museums will have to use the so-called "prewspolczynnik". According to "Dziennik Gazeta Prawna", Pawel Gruzy assured the head of the National Fiscal Administration will analyse the problem and modify the interpretations contrary to the current position of the Ministry of Finance. 
Grunwald Monument - Krakow, Poland
The last FREE MUSEUM NIGHT 
If the new position of the Fiscal Administration is accepted, it is possible to completely reorganize the organisation of free events by the cultural institutions. I'm speaking here not my about the Night of Museums but also about other cultural events that were free up until now - events designed also to support the activities of cultural institutions. Most likely, the only sensible solution to this problem will be the introduction of payment for sightseeing. It is impossible that it will be necessary to eliminate other manifestations of unpaid statutory activity! If the Night of Museums is a ticketing event, services or goods purchased during the event may be considered directly related to VAT - taxed activities. The organisation of a paid event cannot constitute a statutory activity. For this reason, the formula of the Night of Museums will most probably change (from what it was the recent years). I just hope they will still be able to discuss this through and still have the FREE MUSEUM NIGHT (and the occasional free days of the museum)...

Yours sincerely, 
The Twisted Red LadyBug That Loves Museums