On 18 February 2021, the Ministry of Finance presented a new draft called SLIM VAT 2. The package aims to simplify the invoicing procedure, reduce formalities and improve the liquidity of companies using the split payment mechanism.
The most important proposed tax changes:
Art. 22 sec. 2e and 3
Specification to which delivery should be assigned a shipment or transport when the first supplier is a transport organizer ⤵
The proposed amendment aims to introduce the principle according to which, when the export of goods or the intra-Community delivery of goods is organized by the first entity in the chain, the shipment or transport of goods will, in any case, be assigned to its delivery.
Art. 29a sec. 13a, Art. 30a sec. 1a and Art. 86 sec. 19c
Regulating the way of making in minus correction in the case of importing services and intra-Community acquisition of goods ⤵
The package introduces the rules concerning the period in which the taxpayer should settle the correction reducing the tax base in the case of import of services and intra-Community acquisition of goods.
The adjustment caused by reasons arising already at the stage of concluding a given transaction (e.g. incorrectly specified price, quantity) will have to be settled for the period in which the original transaction was shown.
The correction caused by the reasons that occurred after the transaction (e.g. granting an additional discount or cash discount) will be settled on an ongoing basis, in the declaration for the month when the reason for the correction occurred.
The correction of the output VAT will require to make a similar correction on the side of the input VAT in the same period.
Art. 33a sec. 6a and 7
Amendment of the provisions on the import of goods under the simplified procedure from Art. 33a of the VAT Act ⤵
The proposed change is aimed at enabling the taxpayer to settle the tax on the import of goods directly in the tax declaration to correct the declaration in a situation where the taxpayer did not settle the tax in the original declaration. The taxpayer will be able to submit an appropriate correction of the declaration within 4 months after the month in which he was obliged to settle the tax on the import of goods.
Art. 43 sec. 10a
Simplifying the choice of taxation options in real estate transactions ⤵
The package introduces the possibility of submitting a statement on the waive the exemption from VAT in the case of the delivery of buildings, structures, or parts directly in the notarial deed.
Art. 86 sec. 10b
Simplifying the rules for deducting input tax on import of services ⤵
The draft proposes a return to the rules in force before 01/01/2017 regarding importing services and resignation from the condition of settling the output tax within 3 months as a condition for deducting input VAT in the same settlement period as the declared output tax.
Art. 86 sec. 13
Changing the rules for adjusting deducting input VAT ⤵
The draft introduces the possibility of deducting input VAT “after the deadline” not only by adjusting the period in which the right to deduct arose (this is the case today) but also by adjusting one of the next three settlement periods (two – in the case of taxpayers paying VAT quarterly).
Art. 88 sec. 3b, Art. 106g and 106l
Liquidation of duplicate invoices ⤵
Duplicate invoices will be no longer issued. In case that the invoice is damaged or lost, the buyer should receive another copy of the same invoice.
Art. 89a and 89b
Changing the rules of bad debt relief ⤵
SLIM VAT 2 package will remove the condition that in order to take advantage of the bad debt relief, on the day of delivery of goods or services, as well as on the day preceding the day of submitting the correction of the tax declaration, the debtor must be registered as a VAT payer and has not been in bankruptcy proceedings or during liquidation.
The requirement for the creditor to remain a VAT-registered taxpayer on the day preceding the submission of the correction will be maintained.
The package also provides the extension of the deadline for using a bad debt relief mechanism from 2 to 3 years from the date of issuing the invoice documenting the claim, counting from the end of the year in which it was issued.
Change of requirements for an advance invoice ⤵
The proposed amendment deletes the requirement to include the net unit price on the invoice.
Extension of the deadline for issuing an invoice before the delivery of goods/performance of the service/receipt of the advance payment ⤵
Currently, it is possible to issue an invoice 30 days before the goods are delivered, the service is provided or the advance payment is received. After the changes, this period will be extended to 60 days.
Simplifying the requirements for correcting invoices ⤵
Correcting invoices will not have to be marked with the words “correcting invoice” or “credit note” and will not have to indicate the reason for the correction.
Enabling the issuance of collective correcting invoices only for some deliveries in a given period ⤵
The proposed change aims to remove the restrictions on the issue of collective corrective invoices. It will be possible to the issuance of collective correcting invoices only for some deliveries in a given period.
Art. 62b Banking Law Act
VAT account for split payment ⤵
The draft introduces the possibility of transferring funds between the taxpayer’s VAT accounts kept at different banks.
When will the changes come into force? ⤵
Most of the planned solutions are to enter into force on 1 October 2021, others from 1 January 2022.
The draft is at public pre-consultation sage and may still be amended. Our experts from ASB Tax – Jarosław Szajkowski and Łukasz Woźniak have taken part in pre-consultation and have sent to the Ministry of Finance their comments and suggestions on the presented solutions. This document is available here.