Polish Deal – VAT changes as from 1st January 2022

As from 1st January 2022, the Polish Deal regulations entered into force. This led to many changes among other in tax, social and health insurance as well as other. In this article we analyse the VAT changes. 

Firstly, the new regulation enables the choice of taxation of the financial services. Before the 1st January 2022, the taxpayers were obligated to apply the exemption. Now, they have right to turn away from the exemption and tax the financial services with 23% VAT rate. The list of the mentioned financial services has been included in art. 43 p. 7, 12,38-41 PL VAT law.

Secondly, the non-cash taxpayers are entitled to receive a VAT refund within 15 days calculated from the date of the VAT reports submission. However, they are obligated to meet several conditions.

We have written about it in the below article: https://polishtax.com/the-new-reduced-deadlines-for-the-vat-refund-15-days-and-40-days/

Thirdly, based on the art. 19a p.1 of the Entrepreneurs Law Act the obligation to be ready to accept non-cash payment came into the force. The taxpayers are obligated to ensure the possibility of making payments with the use of a payment instrument in every place where business activity is actually performed.

Additionally, the Polish Deal introduces changes to the Binding Rate Information (WIS). The WIS will not be issued if the material scope of the application for its issuance is the subject of the investment agreement (PI) concluded – on the date of submission of the application. Investment agreement is a new institution in the form of an agreement between the investor and the tax authority regarding the tax consequences of the planned investment in Poland. PI is to be a type of comprehensive interpretation of legal provisions, which is to serve the implementation of the principle of tax law certainty and ensure a uniform and consistent interpretation of tax law provisions for a specific group of entities.

PI will be able to cover, inter alia, description and classification of goods or services and the appropriate VAT rate, i.e. elements that are the subject of the WIS. Therefore, the matter covered by the WIS is also to be covered by the new institution of PI.  

Read more about our VAT Reporting Services:  https://polishtax.com/services/vat-reporting-poland