The Finance Ministry announced on 31 Jan 2022 that public pre-consultations started on their package of legislative proposals for VAT changes called SLIM VAT 3. This is another of a series of amendments designed to simplify VAT compliance processes, including by removal of legacy duties that continue to burden taxable persons but are obsolete and unnecessary in the digital tax age.

See below for the main SLIM VAT 3 proposals:

  • a single currency exchange rate for so-called summary correcting invoices that reduce VAT (the rate to be that ruling on the day preceding issuance of the correcting invoice);
  • no more duty to hold the original invoice as evidence if you wish to deduct VAT on intra-Community acquisitions of goods;
  • change of the period in which an intra-Community supply of goods must be reported when adjusting your return: from the month of supply to the month in which the tax becomes chargeable;
  • no more duty to issue an advance invoice where the advance payment and the supply are made in the same period of account;
  • higher threshold for small taxpayers – EUR 2 million;
  • increase from PLN 500 to PLN 10,0000 the threshold that triggers the application of the 100% deductible proportion;
  • no more duty to ensure that documents from VAT cash registers are printed on paper;
  • reduced rates of penalty VAT (surcharge) related to adjustments of tax return: from 20% to 10% and from 15% to 5%;
  • the Director of National Revenue Information to be appointed as the competent authority for the purposes of binding rulings on rates (WIS), excise (WIA) or tariffs (WIT).

As Doradztwo Podatkowe WTS&SAJA Sp. z o.o. we are actively involved in the pre-consultation process, which is scheduled to continue until 23 Feb 2022.

Available information suggests the SLIM VAT 3 package would enter into force in the fourth quarter of 2022.

If these issues pertain 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.