SLIM VAT – Simple, Local and Modern tax in Poland – new package

The Polish Ministry of Finance has started to listen to the business demands in the field of VAT simplification.

SLIM VAT is a package of changes that will make the VAT easy to use, adapted to the local specificity of the country in which it operates. The assumptions for the changes were prepared for small and medium-sized enterprises but the larger businesses will also benefit from it.

The changes are proposed based on the entrepreneurs’ demands during the meetings with the government, for which more detailed documentation for the purpose of transactions is required.

The SLIM VAT package will implement the changes to VAT in the four following areas.

Simple invoicing

  • The sale invoice corrections „in minus”
    • resignation from the formal condition of obtaining confirmation of receipt of the invoice correction „in minus” from the purchaser,
    • the right to reduce the tax base and the output tax already in the period of issuing the invoice correction „in minus”, provided that the documentation in the seller possession proves that he agreed with the purchaser the transaction terms.
  • The sale invoice corrections „in-plus”
    • implementation to the VAT Act regulations specifying the method of settlement of the invoice correction „in plus” (increasing the tax base). Currently, taxpayers relied only on the tax ruling and jurisprudence. The current resolution does not give adequate legal certainty.

Facilitations for exporters

  • A term to apply the 0% VAT rate on the advance payment in the export of goods, will be extended from 2 to 6 months.

Common currency exchange rates for VAT and CIT (Corporate Income Tax)

  • The taxpayer will be able to choose for VAT purposes the rules of currency conversion as for the income taxes.

Financial benefits

  • Extending the deadline for the input tax deduction on an ongoing basis from 3 to 4 months.
  • Right of VAT deduction from invoices for the accommodation services which are purchased for resale.
  • Increasing the limit on the low-value gifts (a free-of-charge transfer) from PLN 10 to PLN 20.

For more information, please feel free to contact us:

Anna Szafraniec
CEE VAT Compliance Director

Łukasz Woźniak
VAT Compliance Manager

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