The possible changes on the reverse charge mechanism starting January 1st 2013 in PolandTags: reverse charge Categories: NEWS & Events, RSS
Polish Ministry of Finance published on its website a draft law amending the VAT Act (draft law on 25 May 2012, along with justification), which shows that the change is going to affect Article 17 paragraph 4 and 5 of the VAT Act.
The project of a change in the Polish VAT Act means that there might be an additional condition that the supplier of the goods could not be registered as the active VAT payer on the territory of Poland in order to use a reverse charge mechanism.
This would mean that while maintaining the registration in Poland (which may be necessary for various reasons), there would not be opportunities for further application of reverse charge mechanism in Poland.
The current legal status is that the reverse mechanism procedure applies if the appropriate recipient or the recipient of the goods is a taxable person established in Poland. The delivery of goods of a foreign taxpayer (registered in Poland, but not having a permanent place of business or fixed establishment on the territory of Poland) which are carried out for the Polish taxpayers, are not taxed by the supplier, but the obligation to account for VAT is imposed on the purchaser.