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Poland – SLIM VAT

By August 24, 2020July 10th, 2021No Comments

The Polish Ministry of Finance has started to listen to business’ demands in the field of VAT simplification. SLIM VAT is a package of changes which will make the VAT system easy to use, adapted to the local specificity of the country in which it operates…

SLIM VAT – Simple, Local and Modern tax in Poland – new package

 

The Polish Ministry of Finance has started to listen to business’ demands in the field of VAT simplification.

SLIM VAT is a package of changes which will make the VAT system easy to use, adapted to the local specificity of the country in which it operates. The assumptions for the changes were prepared for the small and medium-sized enterprises but larger business will also benefit from it.

The changes are proposed based on the entrepreneurs’ demands during the meetings with the government, for which more detailed documentation for the purpose of transactions is required.

The SLIM VAT package will implement the changes to VAT in four following areas.

 

Simple invoicing

  • The sale invoice corrections „in minus”

  • resignation from the formal condition of obtaining confirmation of receipt of the invoice correction „in minus” from the purchaser,

  • the right to reduce the tax base and the output tax already in the period of issuing the invoice correction „in minus”, provided that the documentation in the seller’s possession proves that he agreed with the purchaser the transaction terms.

  • The sale invoice corrections „in-plus”

  • implementation to the VAT Act regulations specifying the method of settlement of the invoice correction „in plus” (increasing the tax base). Currently, taxpayers relied only on the tax ruling and jurisprudence. Current situation does not give adequate legal certainty.

 

Facilitations for exporters

  • A term to apply the 0% VAT rate on the advance payment in the export of goods, will be extended from 2 to 6 months.

 

Common currency exchange rates for VAT and CIT (Corporate Income Tax)

  • The taxpayer will be able to choose for VAT purposes the rules of currency conversion as for the income taxes.

 

Financial benefits

  • Extending the deadline for the input tax deduction on an ongoing basis from 3 to 4 months.

  • Right of VAT deduction from invoices for accommodation services which are purchased for resale.

  • Increasing the limit on the low value gifts (a free-of-charge transfer) from PLN 10 to PLN 20.

 

For more information, please feel free to contact us:

Anna Szafraniec, CEE VAT Compliance Director, aszafraniec@asbgroup.eu

Łukasz Woźniak, VAT Compliance Manager, lwozniak@asbgroup.eu