VAT changes in Poland in 2023

Some of the temporarily reduced VAT rates applicable on the basis of ‘Anti-Inflation Shield’ will no longer be extended in 2023. This occurs due to fact that ‘Anti-Inflation Shield’ will be using other instruments from 2023. Following VAT rates will be possible to apply only until 31st December 2022:

  • 8% VAT rate for the supply of motor petrol, diesel, biocomponents, LNG and LPG.
  • 5% VAT rate for the supply of heat and electricity
  • 0% VAT rate for the supply of natural gas.

Starting from 1st January 2023, the aforementioned supplies will be subject to 23% VAT rate – the standard VAT rate.

Based on regulation of the Ministry of Finance from 2nd December 2022 on reduced VAT rates in 2023, in period from 1st January until 31st December 2023 reduced VAT rates will continue to be applicable to:

  • Foodstuffs listed in Annex 10 to the VAT Act under items 1-18, other than those classified as catering services (PKWiU 56), e.g. fish, dairy products, meat, vegetables and fruits, bread, oils, etc. – 0% VAT rate
  • goods subject to services on tangible movable property before shipment to other EU member states – 0% VAT rate
  • free of charge supply of goods or services for the purpose of assistance to victims of the war in Ukraine through Governmental Agency for Strategic Reserves, health care institutions and local government units – until 30th June 2023, 0% VAT rate.
  • soil conditioners, growth promoters and substrates for cultivation (with exclusion of mineral substrates and potting soil), microbial dertilisers – until 31st December 2024, 8% VAT rate.

Further changes in the aspect of reduced rates in recent years are associated with the need to apply transitional provisions – art. 41(14a) and following regulations of the VAT Act, that make the application of the appropriate rate conditional on the supply of services, rather than the issuance of invoice. Please, keep in mind that the transitional provisions and changes in rates are applied not only to electricity or natural gas supplies, but also to entities re-invoicing their costs as part of settlements with lessees.

In addition to that changes that are part of Slim VAT 3 package are planned to come into effect starting 1 April 2023. Among changes included in SLIM VAT 3 are:

  • Status of a small taxpayer will be applicable to entities with annual turnover not exceeding 2.000.000,00 EUR or 9.654.000,00 PLN.
  • Cancellation of obligation to print documents for entities using online fiscal cash registers and virtual cash registers
  • Appointment of Director of National Revenue Information as the institution responsible for issuing WIT, WIP and WIA in first instance and reviewing appeals in the second instance.
  • Cashless taxpayer will be entitled to VAT refund within 15 days.
  • Simplification of the process of release from joint responsibility by making direct transfer of VAT tax amount to the new intermediary.
  • Clarification of the rules concerning application of the foreign currency exchange rates to corrective invoices, when original invoice was issued in foreign currency.
  • Cancellation of obligation to consult the proportion reports with the Head of the Tax Office for mixed saled – instead it is required to notify about used data for calculation of proportions.
  • Clarification of the period for which Intra-Community acquisition of goods (ICA) is declared, when taxpayer receives documentation confirming ICA after period of three months.
  • Possibility of deducting VAT on the basis of Intra-Community supply of goods (ICS) without invoice.
  • Possibility of reducing fines for mistakes in VAT reporting

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