Changes in Polish VAT law – Slim VAT 3

The Senate adopted an amendment to the Act on Value Added Tax and some other acts, called Slim VAT 3. The purpose of the changes is to simplify and accelerate VAT settlements, thanks to which the financial liquidity of companies will also be improved. Majority of the changes will be implemented as from 1st of July 2023.

The changes are aimed at e.g. reduction of formalities in international trade.  The moment of showing the intra-Community supply of goods with a 0% rate in reporting corrections will be clarified. If documents are received with delay, the transaction will be shown on the date when the tax obligation arises, instead of on the date of delivery.

Regarding  in intra-Community acquisition of goods there will be also simplification i.e. exclusion of the obligation to have an invoice for the purpose of confirming the possibility of deducting VAT

Other amendments include:

  • introduction of a method of adjusting transactions settled under the OSS and IOSS, when the taxpayer no longer uses the procedures,
  • simplification and clarification of the exchange rates used for correcting invoices in minus and in plus (including, among others, the possibility of using one foreign currency exchange rate for collective in minus invoices from the day preceding the date of issuing the correction – as for now it is much more complicated i.e. the exchange rate appropriate for each of the transactions included in the correction should be used ),
  • reduction of the rates of preferential VAT sanctions from 20% to 10% and from 15% to 5%,
  • introduction of a system for measuring VAT sanctions, ordering to take into account the economic situation of the taxpayer. This means that the tax authorities, when determining VAT sanctions, will take into account the specific circumstances of a given case, thus the sanctions will be individualized,
  • the sales limit for a small taxpayer will be increased from EUR 1.2 to 2 million,
  • the fee for applying for Binding Rate Information (WIS) will be waived,
  • introduction of the possibility of making transfers from the VAT account from members of the VAT group to the representative of this group, who will be responsible for paying VAT by the group from 1 July 2022,
  • the conditions for faster VAT refunds for the so-called non-cash taxpayers,
  • simplification of the use of split payment for factoring by introducing an additional method of releasing from joint and several liability in the event of a factor change.

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