In early September, the Government Legislation Centre published on-line proposal for an Act of 4 August 2022 to Amend the Goods and Services Tax Act and Certain Other Acts (“Proposal”), commonly referred to as SLIM VAT 3. The Proposal has been submitted for public consultations scheduled to last until 26 August 2022.

Major changes in the Proposal are summarised below:

  • the sales limit for establishing the small taxable person status will be increased to EUR 2 million;
  • in certain cases the exchange rate to be used for correcting invoices will be the rate prevailing on the day preceding the date of the correcting invoice;
  • tax authorities will be able to individually vary penalty VAT (surcharge) rates where specifically warranted by taxable person’s circumstance, with the Proposal imposing maximum penalty rates of 5%, 20% and 30%;
  • the Proposal more precisely specifies the period for which a taxable person is to report an intra-Community supply of goods where he has received documentary evidence for the transaction after the statutory time of 3 months;
  • the same authority (Director of National Revenue Information) will be empowered to issue binding rate information (WIS), binding excise information (WIA), and binding tariff information (WIT);
  • no formal requirement to hold an invoice for an intra-Community acquisition of goods in order to be able to deduct the related input tax;
  • no duty to issue a dedicated invoice for an advance payment if the payment is received in the same period of account in which the related supply is made.

The new law is proposed to enter into force on 1 January 2023.

We will keep you updated on the progress of this legislation.

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.