The Finance Ministry is working on another package of measures to simplify VAT regulations, called SLIM VAT 2. The Ministry has published a notice according to which the changes are expected to affect the following areas:

  • Invoicing: simplified rules for correcting invoices, longer issuance deadline (up to 60 days before supply), abolition of the use of duplicates.
  • Right of deduction: right of deduction through adjustment to be extended to include option to adjust by reference to one of three successive periods in which the deduction was available.
  • Cross-border VAT: new rules for how to recognise correcting invoices with downward adjustments for intra-Community acquisitions and imported services.
  • VAT in real estate: election of tax treatment can be made in the notarial deed.
  • Slit payment and relief for VAT on bad debts: funds may be transferred between VAT accounts relating to accounts with different banks, relief for VAT on bad debts will be available for longer (up to 3 years).

The first round of SLIM VAT 2 measures includes a proposed regulation of the Minister of Finance, Funds and Regional Policy to amend the treatment of tickets as invoices.
So far for a ticket to be treated as an invoice, it had to be a motorway toll ticket or a one-off ticket for transport over a distance of at least 50 kilometres. According to the proposed measure, passenger carriers will no longer have to issue separate invoices on request for travel below 50 kms. The customer will be allowed to deduct VAT using his ticket regardless of the distance travelled, on condition the purchase is related to taxable activities.
The proposed regulation is currently undergoing the intra-cabinet approval process and is expected to become effective one day after publication.
We will keep you up-to-date with the progress of this legislation.
If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.

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