What awaits us in the new tax year? – SLIM VAT 3 package consultation

Inter-ministerial arrangements and public consultations of another VAT simplification project, the so-called SLIM VAT 3, have recently been completed. The legislator plans to introduce most of the proposed solutions as early as 1 January 2023.

The most important changes envisaged by the draft of the Ministry of Finance are:

  • Change of limits for the small taxpayer – easier access to quarterly VAT settlements and the use of the cash accounting method thanks to the increase of the gross sales limit from EUR 1 200 000 to EUR 2 000 000
  • Relaxation of VAT penalty provisions – implementation of the CJEU judgment in case C-935/19: tax authorities will have to take into account the individual situation of the taxpayer when imposing an additional liability. The amount of the additional VAT liability will become graded – up to 15%, up to 20%, up to 30%, and up to 100% (previously, it was not flexible)
  • Abolition of the requirement to hold an invoice documenting an intra-Community acquisition of goods when deducting VAT – currently, if a taxpayer is not in possession of an invoice documenting the intra-Community acquisition of goods after 3 months, the adequate adjustment of the input tax should be made.
  • For correcting invoices, the exchange rate reference will be the same as used for the original invoice – the rules apply to both ‘in minus’ and ‘in plus’ correcting invoices.
  • Application for Binding Tariff Information free of charge
  • Change of the issuing authority for Binding Excise Information, Binding Tariff Information, and Binding Origin Information – until now, all of these documents are issued by different authorities. After the change, it will be the responsibility of the Director of the National Tax Information.
  • Increase of the amount limit obliging to apply the ratio – from 500 PLN to 10,000 PLN.
  • Voluntary adjustment of the VAT coefficient – in a situation where the difference between the initial and the final ratio does not exceed 2 percentage points and the non-deductible input tax resulting from the difference between the initial and the final ratio as well as the multiannual adjustment does not exceed 10,000 PLN, the taxpayer can resign from the adjustment of the VAT coefficient.
  • Increased scope of the subjective exemption for investment fund management services – services provided to funds based in the other EU Member States will be covered by the exemption.
  • More possibilities to dispose of the funds accumulated on VAT accounts – funds accumulated on VAT accounts will be able to be used to settle other tax liabilities, e.g.: sugar fee or tonnage tax.
  • Reduction of the requirements for becoming a cashless taxpayer – i.e.:
    • share of online cash register sales – not less than 70% (previously 80%),
    • share of cashless payments accepted – not less than 55% (previously 65%),
    • reduction to 6 months (previously 12 months) of the period taken for analysis for determining the condition of keeping records of sales using online cash registers.

If you would like to know more on the upcoming VAT tax changes, please do not hesitate to contact our experts.

Anna Szafraniec
CEE VAT Compliance Director

Jarosław Szajkowski
Senior Tax Manager – Tax Adviser

Małgorzata Kasińska
VAT Consultant

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