Poland: SLIM VAT Package

On 1 June 2023, the Polish president signed Act of 26 May 2023 amending the act on tax on goods and services and some other acts (Ustawa z  dnia 26 maja 2023 r. o zmianie ustawy o podatku od towarów i usług oraz niektórych innych ustaw)

This Act introduces measures to simplify the VAT reporting obligations referred to as ‘SLIM VAT 3” package.

Effective entry into force of most provisions is 1 July 2023. (art. 35 of the Act)

Below are listed some of the VAT related measures:

1. Small business threshold increase – from EUR 1,200,000 to EUR 2,000,000
   1. expected to result in an increase of the number of taxpayers entitled to use the cash accounting method and quarterly VAT settlements

• Resign from the requirement to have an invoice for intra-Community acquisition of goods (WNT) to be able to deduct related input tax on this account

• Correction of tax declarations changes – introducing regulations that enable submitting corrections to declarations outside the OSS and IOSS systems directly to the Lodz Tax Office

• Clarifications on the rules for applying the conversion rate for correcting invoices when the invoice was issued in a foreign currency – see Excerpt 1 – Table 1

• Proportional deduction of input VAT (taxpayers carrying out both of taxable and exempt activities)
  • Introduction of the possibility of resigning from the correction if the difference between the preliminary and final proportion does not exceed 2%:
  • Elimination the obligation to agree with the head of the tax office in the form of a protocol of proportions to deduct input tax. Instead, we introduce a requirement to notify the head of the tax office of the adopted proportion:
  • Increase the amount allowing for recognizing that the proportion of deduction specified by the taxpayer is 100%, in a situation where this proportion exceeded 98%, from the current PLN 500 to PLN 10,000. The change applies to taxpayers who carry out taxable and VAT-exempt activities as part of their business and enables the deduction of the entire VAT amount in the case of taxpayers for whom a significant part of the turnover is VAT-taxable activities.

• VAT Groups – regulating the issues of transferring funds between VAT accounts in a group, i.e. introduce the possibility of transferring funds from the VAT account of a group member to the VAT account of a representative of this group

• 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)
  • introduction of a new electronic receipts distribution system

• Tax Knowledge access facilitation – simplification – via 
  • consolidating the issuance of binding information by designating a single authority competent to issue WIS, WIA, BTI and WIP
  • unifying the regulations on the rules for issuing and using WIS and WIA, i.e., binding information of a national nature
  • eliminating the fees for the application for the issuance of WIS.

• Resignation from the obligatory issuance by the tax authorities of decisions on crediting the payment/overpayment/tax refund against tax arrears and interest for late payment

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