Foreign currencies made of monetary gold – commentary on the judgment of the Supreme Administrative Court of 31 January 2025, III FSK 154/23

Abstract

This commentary examines the judgment of the Supreme Administrative Court concerning the application of the Polish tax on civil law transactions and the interpretation of key terms under Polish foreign exchange law, specifically “foreign currencies” and “monetary gold.” The text is structured into three parts: an introduction; a presentation of the factual and legal background; and conclusions. In the introductory section, the author discusses the concept of currency from both legal and economic perspectives, outlines the basic forms of money, and provides an overview of monetary systems. The second section outlines the factual background of the case and the judgment of the Supreme Administrative Court, which was preceded by an individual tax ruling issued by the Director of the National Revenue Information Service and a prior judgment of the Provincial Administrative Court in Wrocław. In the judgment under review, the Supreme Administrative Court held that the Polish legislature intended the definition of “foreign currencies” to cover all coins and banknotes that serve as legal tender abroad, regardless of whether they also qualify as “monetary gold” under the Foreign Exchange Law. Consequently, the sale of coins made of gold that are legal tender outside of Poland is exempt from the tax on civil law transactions, in the same way as the sale of foreign currencies. In the concluding section, the author concurs with the view expressed by the Supreme Administrative Court, emphasizing that the decisive factor in the case was the function of the gold coins as means of payment outside the territory of the Republic of Poland. Importantly, neither the fact that the coins are made of monetary gold – as defined in the Foreign Exchange Law – nor the circumstance that their intrinsic value (and thus their market price) exceeds their face value affects this qualification.