Yesterday the Council of Ministers adopted a draft Act on amendments to the Polish Value Added Tax Act and certain other laws – the so-called “SLIM VAT 3” package.
This is another installment of the VAT modification campaign, aimed at preparing packages of changes that make it easier for entrepreneurs to account for VAT. Thanks to them, Polish VAT is to be simple, adapted to Polish realities, as well as modern.
According to available information, the most important changes under the project include:
- abandoning the requirement to possess an invoice for ICA when deducting input tax on this account;
- increasing the limit on the value of sales, entitling to small taxpayer status – from EUR 1,200,000 to EUR 2,000,000. This will increase the number of entrepreneurs who will be able to take advantage of the cash method and quarterly VAT settlements;
- the introduction of new rules for converting exchange rates for corrective invoices – the main assumptions: the “historical” exchange rate for decreasing ones, the exchange rate from the last working day preceding the event for increasing ones;
- a system of measuring VAT sanctions will be introduced, ordering to take into account the economic situation of the taxpayer. This means that tax authorities, when determining VAT sanctions, will take into account the specific circumstances of the case, and sanctions will be individualized;
- extension of the catalog of payments that can be settled under the split payment mechanism to, among other things, retail sales tax;
- abandonment of the obligation to print documents by online/virtual cash registers;
- increase of the amount that allows the proportion determined by the taxpayer to be considered 100%, in a situation where the proportion exceeded 98% for the taxpayer, from the current PLN 500 to PLN 10,000;
- the Binding Rate Information (Pol. WIS) application fee will be eliminated;
- the conditions for faster VAT refunds for so-called non-cash taxpayers will be liberalized.
The draft will be submitted to the Sejm. In principle, the regulations would take effect on 1st April 2023.