Yesterday, the president signed an amendment to the provisions of the VAT Act, the so-called “SLIM VAT” package. It will soon be published in the Journal of Laws.
This package is intended to facilitate some aspects of daily settlements for taxpayers
The most important changes are:
- increasing the limit for small value gifts from PLN 10 to PLN 20;
- instead of confirming receipt of the correcting invoice in minus, “agreeing” with the buyer the conditions indicated on the correcting invoice;
- codification of the principle that the tax base is increased at the time when the reason for the correction arises;
- possibility of using one rate for income tax and for VAT, but the need to apply for 12 months;
- extension of the deadline for the export of goods to maintain the 0% rate for advance payments in exports (from 2 to 6 months);
- deadline for current VAT deduction – extension from 3 to 4 months;
- exclusion of the use of split payment mechanism also for multilateral deductions (e.g. netting);
- binding rate information (WISs) valid for 5 years from the date of their issue (also before the amendment of WISs);
- introducing a deduction of VAT on accommodation services purchased for resale;
- introduction of the electronic document circulation TAX FREE and electronic confirmation of the export of goods.
Importantly, the change in the rules for settling corrective invoices simplifies on the one hand, as it eliminates the need to have receipts.
Nevertheless, the regulations introduce the principle that the reduction of the tax due takes place in the settlement period in which the taxpayer issued a correcting invoice, provided, however, that the documentation held by that taxpayer shows that he agreed with the buyer of the goods or services on the conditions for lowering the tax base specified in correcting invoice and these conditions have been met.
In practice, therefore, it will be required to have “other documentation”, which is to include the arrangements with the counterparty.
At the same time, the buyer will be required to correct the input tax in the period in which the conditions for the reduction were agreed, if these conditions were met before the end of this accounting period. If the conditions for reducing the tax base are met after the tax period in which these conditions have been agreed, the buyer is obliged to reduce the amount of input tax in the settlement for the period in which these conditions were met.
The main part of the changes will come into force on 1 January 2021.