This is to let you know that the government has published a proposed law to amend the VAT Act in order to introduce a package of measures called “SLIM VAT”. Several changes are proposed as part of the package:
- The limit for low-value gifts will be increased from PLN 10 to PLN 20 per unit cost (low-value gifts do not need to be included in VAT records).
- You will no longer need to have confirmation that the other party received your downward adjustment correcting invoice.
You will be allowed to reduce your taxable amount on issuance of your correcting invoice if you agree with the customer on the terms of such reduction to be specified in the invoice and the invoice will be in accordance with your documentation.
- New regulations on the recognition of upward adjustment correcting invoices.
- The regulations on currency translation for VAT purposes will now allow an option to apply the same translation rules as those applicable to income tax.
You will be able to elect the option where currency invoices are translated in accordance with the same rules as those applicable to income for income tax purposes. If you make this election, you will have to keep it for at least 12 months from the first day of the month in which you made it.
- Exporters wishing to ensure payments on account they receive can be zero rated will now have 6 months to move their goods across the border (instead of 2 months as before).
- More time to deduct input VAT (4 months instead of previous 3).
- It will be possible to deduct input tax on accommodation services purchased for resale.
Most of the changes are expected to enter into force on 1 January 2021. The proposal is currently undergoing the intra-cabinet approvals process.
We will keep you up-to-date on the progress of this legislation.
If these issues pertain to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.
Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
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This Newsletter is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.