Poland: SLIM VAT 3 Package

On 18 April 2023, the Polish government officially announced that the SLIM VAT 3 package and the Act sealing VAT in the e-commerce sector was adopted by the Sejm (Sejm Rzeczypospolitej Polskiej is the lower house of the bicameral parliament of Poland).

In addition, the Sejm approved the Act sealing VAT in the e-commerce sector, which includes, among others: reporting cross-border payments if the payment service provider executes more than 25 payments to the same payee in a quarter.

The next phase in adopting the legislation is the adoption by the Senate of the Republic of Poland, scheduled for the 62nd meeting, taking place on 10 May 2023.

The expected effective implementation date is 1 July 2023.

The SLIM VAT 3 package includes measures which aim to simplify invoicing, reduction of formalities and improvement of financial liquidity of companies.

Some of the measures include:

  • Improving the financial liquidity of companies
    • By increasing threshold for mandatory registration of small taxpayers to EUR 2 million, whereby increasing the number of taxpayers entitled to use the cash accounting method and quarterly VAT settlements
  • Reduction of formalities in international trade
    • By waiving the requirement to have an invoice for intra-Community acquisition of goods (when deducting input tax)
    • By introducing regulations that enable submitting corrections to declarations outside the OSS and IOSS systems directly to the Łódź Tax Office
  • Reduce situations in which corrections needed, facilitate VAT settlements
    • By clarifying the rules for applying the conversion rate for correcting invoices when the invoice was issued in a foreign currency
    • By simplifying reporting and calculating pro-rata VAT deduction for taxpayers carrying out both exempt and taxable activities  
  • Simplify invoicing obligations
    • By introducing simplifications in the field of reporting settlements regarding invoicing (e.g. adapting the conditions for issuing invoices to e-receipts) and keeping sales records using cash registers (e.g. the possibility of waiving the obligation to print fiscal documents by taxpayers)
  • Simpler and transparent access to tax knowledge – binding tax information
    • By consolidating the issuance of binding information by designating a single authority competent to issue respective rulings
    • By unifying the regulations on the rules for issuing certain rulings, by eliminating certain fees
    • By postponing the date of entry into force of the obligation to keep electronic books and submit them to tax authorities (JPK_PIT and JPK_CIT) by one year, whereby allowing the taxpayers will have more time to prepare their IT systems.

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