This week, an amendment to the VAT Act – the so-called “SLIM VAT 3” package – was published in the “Journal of Laws”. This means that we are already sure what changes await taxpayers as of 1 July this year. Below, we present their brief description.
An important change is the abandonment of the requirement to possess an invoice in case of intra-Community acquisition when deducting input tax on this account.
New rules are introduced for the conversion of exchange rates when correcting invoices are issued. The „historic” rate is to be used for individual „in minus” correction invoices (in practice, also for „in plus” correction invoices). In the case of a collective correction invoice related to a discount (i.e. “in minus”) in domestic transactions and WNT/reverse charge – it will be possible to either apply the rate from the last working day before issuance collectively or convert each item at the given “historic” rate.
Such solutions mean that there is still no comprehensive regulation, which may give rise to practical doubts.
There is an increase in the sales value limit for small taxpayer status – from EUR 1 200 000 to EUR 2 000 000. Note: this will still be the „gross” sales limit.
Another change concerns the partial deduction of VAT. This is an increase in the amount allowing the proportion determined by the taxpayer to be deemed to be 100%, (in a situation where the proportion exceeded 98% for the taxpayer) from the current PLN 500 to PLN 10 000.
Also beneficial for taxpayers is the option to resign from making a correction if the difference does not exceed 2 percentage points and the amount of input tax not to be deducted would not exceed PLN 10 000 (the difference between the initial proportion of input tax to be deducted and the final proportion). Until now, this adjustment has been mandatory.
In intra-Community Supplies, the application of the 0% rate will be possible upon receipt of documentation by way of a correction of the period in which the tax obligation arose (rather than the period in which the supply was made).
There is also an extension of the catalogue of supplies that can be settled under the split payment mechanism to, inter alia, retail sales tax or sugar levy.
An aftermath of the TUSE ruling is the possibility to waive the imposition of a „VAT sanction” in certain situations, in particular for „due diligence” of the taxpayer – introducing only its upper limits (up to 15/20/30%).
The obligation for online/virtual cash registers to print documents is also abandoned.
Another element of the amendment is the changes to binding information. They are now always to be issued by the Director of National Fiscal Information (not only rate, but also tariff and excise). Important: binding rate information is to be binding not only on the tax authorities, but also on the addressees (from the moment of service of the decision). The PLN 40 fee is also eliminated and the catalogue of applicants is expanded.
It is also worth mentioning that the benefits of using the split payment mechanism (no application of VAT sanctions and increased interest on arrears) are also to apply to factoring situations.