Amendments to the VAT Act – the Sejm has passed the SLIM VAT 3 package

On Friday, April 14, 2023, the Sejm passed an amendment to  the Act on goods and services tax and certain other acts. It is planned to take effect on 1 July 2023. The solutions are primarily aimed at reducing formalities in international trade and simplifying tax settlements in domestic transactions.

The changes apply primarily to the following areas:

  • an increased sales limit for small taxpayers (from €1.2 million to €2 million),
  • relaxation of VAT sanctions (sanctions limited to the levels established in the Act e.g. to 20%, no sanctions applied automatically),
  • no requirement to have an invoice to deduct input VAT on ICA,
  • simplification of conversion rates for corrective invoices ( for example a single exchange rate of the day preceding issuance of corrective invoices can be used for collective invoices with negative amounts ),
  • no requirement to print out fiscal reports and non-fiscal documents from online cash registers,
  • an increased threshold value for adopting 100% proportion where it exceeds 98%.

For more detailed information on the changes introduced by the SLIM VAT 3 package, see our previous newsletter:

Please note that the legislation process is still underway, and the bill needs to be approved by the Senate and signed by the President, which means it may still be modified.

If you are interested in the above issues, do not hesitate to contact us.