Reverse charge in VAT will apply from 1 April 2023 to 28 February 2025 in the case of:

  • supplies of gas in the gas system,
  • supplies of electricity in the power system, and
  • supplies of services involving the transfer of greenhouse gas emission allowances;

provided the supplies are made on a commodity exchange, regulated market or organised trading facility (OTF). This also includes situations where the supplies are made by a taxable person who has established his business or has a fixed establishment (FE) in Poland.

The change was introduced in the VAT Act by means of an enactment called the Act of 9 March 2023 to Amend the Administrative Enforcement Act and Certain Other Acts, which added Articles 145e to 145k to the VAT Act to apply to transactions which become chargeable to VAT between 1 April 2023 and 28 February 2025, inclusive.

During that time, the liability to VAT will be on purchasers/recipients of those supplies (whether the purchasers are legal persons, unincorporated organisations or natural persons) if all of the following is true:

  1. in the case of supplies of gas or electricity – the purchaser is an exempt or non-exempt taxable person registered in Poland as such, his main activity with respect to purchased gas or electricity involves resale thereof, and his own consumption of those commodities is insignificant;
  2. in the case of services involving the transfer of greenhouse gas emission allowances – the recipient is an exempt or non-exempt taxable person registered in Poland as such;
  3. the supply is made in course of a transaction executed directly or via an authorised agent on:
    1. a commodity exchange, as defined in commodity exchanges legislation, or
    2. a regulated market or OTF, as defined in the Financial Instruments Trading Act of 29 July 2005;
  4. the supplier is a taxable person registered for VAT purposes in Poland who is not exempt under Article 113(1) and 113(9) of the VAT Act (entity exemption does not apply).

The new law will apply where the purchaser (Article 22(1)(5) VAT Act) or recipient (Article 28b(1) to 28b(3) VAT Act) has established his business in Poland or has in Poland an FE or a place where he permanently or habitually resides.

Before their first transaction of this kind, the supplier and the purchaser (service recipient) will have to notify the relevant tax office that they wish to start such transactions.

If this issue pertains to your business and you are interested in our assistance, please contact us.

This blog post 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.