SLIM VAT 2 – the second installment of changes

The Ministry of Finance intensively works on changes concerning VAT taxation. Despite changes that entered into force from 1 January 2021 (➡ read more about SLIM VAT changes) further changes will be implemented to the domestic regulations in the next months as e-commerce regulations, National e-Invoicing System or new regulations related to the VAT group in Poland planned to be entered, the institution of cashless taxpayers, even SLIM VAT 3 package.

Nevertheless, the recently published draft amendment to the VAT Act presents additional simplifications for taxpayers so-called SLIM VAT 2 including, for example, changes in the following areas:

• introducing a regulation that in the case of the export of goods or intra-Community supply of goods would clearly define which delivery should be assigned to the shipment or transport,
• resignation from the condition making the deduction of input tax in the same period in which the output tax was reported, provided that the output VAT is recognized within three months from the end of the month in which the tax obligation arose – implementation of the judgment of the CJEU in the case C-895/19,
• the simplified procedure in the import of goods – enabling the taxpayer settling the VAT from the import of goods directly in the VAT return to correct the declaration within 4 months in a situation where a taxpayer did not settle the output tax correctly in the initial VAT return,
• bad debt relief institution – implementation of the CEJU judgment in the case C-335/19,
• 100% input tax deductions from car expenses – an extension of the deadline for submitting information on incurring the first expenditure on a vehicle used exclusively for the taxpayer’s business activity, in connection with the moment of submitting JPK_V7 for the completed period,
• simplification in the input tax deduction after the expiry of the deduction deadline “on an ongoing basis” – the extension of the number of accounting periods in which the taxpayer will be able to deduct by correcting the tax return.

The SLIM VAT 2 package is planned to be implemented as of October 1, 2021. We will inform you about the further stages of the draft.

In the case of any questions concerning VAT, please contact our tax experts: