SLIM VAT: The Ministry of Finance announced simplifications for taxpayers

July 31, 2020 Poland

The Ministry of Finance announced 16 July 2020 a package of changes to facilitate calculation and settlement of VAT. The aim of proposed changes is to make VAT easier, more modern, and adopted to the local reality, i.e. the high presence of small and medium-sized firms in Poland that settle their taxes on their own.

Among the proposed changes we can find, in particular, changes in provisions concerning invoicing, exchange rates for VAT purposes, facilitations for exporters, and changes in the scope of VAT deduction:

CORRECTIVE INVOICES

  • Corrective invoices in-minus: the seller of the goods will not be required to receive the confirmation of receipt of a corrective invoice by the buyer. The taxpayer will be entitled to reduce the tax base and output VAT in a period when the invoice is issued if the documentation collected by the taxpayer shows that the terms of the transaction were agreed with the contractor. At the same time, the buyer will be obliged to make an appropriate correction of the input VAT.
  • Corrective invoices in-plus: introducing to the VAT Act the provisions related to the settlement of corrective invoices increasing the tax base. The settlement should be made on an ongoing basis during the period of issuing the corrective invoice in-plus (due to reasons arising after the sale).

SIMPLIFICATIONS FOR EXPORTERS

  • Extending the deadline for the export of goods from 2 to 6 months during which a 0% rate on the advance may be applied.

COMMON EXCHANGE RATES

  • The taxpayer will be entitled to choose the rule of currency conversion for VAT purposes, which is applied by him for the purposes of converting currency in income tax.

VAT DEDUCTION

  • The deadline for VAT deduction on an ongoing basis will be extended to 4 months for monthly deductions.
  • It will be possible to deduct the VAT from the invoice for the purchase of accommodation services for a business contractor (the prohibition of deducting VAT for taxpayers purchasing services for resale will be removed).

SMALL-VALUE GIFTS

  • Increasing the unrecorded amount limit for one-off small-value gifts forms 10 PLN to 20 PLN.

The Ministry of Finance plans to implement the changes in 2021. We will inform you about the next stages of works on the SLIM VAT package.

If you have any questions regarding VAT, please contact our experts:

Łukasz Bączyk
Head of Tax, Board Member
E: lbaczyk@asbgroup.eu

Anna Szafraniec
CEE VAT Compliance Director
E: aszafraniec@asbgroup.eu

Jarosław Szajkowski
Tax Manager - Tax Adviser
E: jszajkowski@asbgroup.eu