The court reviewed a decision of local Polish authorities which ordered reimbursement by a small undertaking of an EU-funded subsidy, due to alleged breach of incentive effect rules by that undertaking. More specifically, the authorities found that the beneficiary undertaking made an advance payment towards the price of equipment related to the subsidized project (two days) before it filed an application for the subsidy. That payment was invoiced on the same date by the supplier to the beneficiary undertaking. Still, prior to that filing the undertaking did not conclude with the supplier (with whom the undertaking had had a long-standing relationship) any written contract for the purchase of the equipment. Also, the amount transferred by the undertaking in advance was considered as
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The Polish regional administrative court in Gdansk issues decision on advance payment for prospective purchase of equipment as a breach of the incentive effect rules
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