Newsletter

New Slim VAT 2 package announced by the MF

The Ministry of Finance announced pre-consultations on the SLIM VAT 2 package. What is new for entrepreneurs this time? The new SLIM VAT solutions (SLIM VAT 2) consist of 5 areas intended to save taxpayers’ time and money.

The proposed changes apply to:

1. invoicing,
2. VAT deduction,
3. VAT in international trade,
4. tax on sale of real estate,
5. improved liquidity in split payments and bad debt relief.

Invoicing

• cancellation of invoice duplicates – if an invoice is destroyed or lost, the seller will provide the buyer with another copy,
• extension of the time for invoicing before the tax obligation arises: from 30 to 60 days,
• simplification in issuance of collective invoices: a new solution is proposed, i.e. a collective correction of specific items in the invoice or the entire invoice,
• cancellation of the limit of kilometers for a ticket to be recognized as an invoice.

VAT deduction

• simplification of the right to deduct VAT. According to the proposed change if the period for recognizing a purchase invoice on a “current” basis is exceeded, the taxpayer will have the possibility to correct the tax return 1) for the period in which the right to reduce the output VAT arose or 2) for one of the three successive account periods, and for taxpayers who make quarterly settlements – in the tax return for one of the two successive account periods falling directly after the account period in which the right to reduce the output VAT arose but no later than within 5 years from the end of the year in which the right arose.
• extension of the time limit for filing the VAT-26 form for passenger cars used for business. At the moment, this deadline is 7 days from the day on which the first expense connected with the car is incurred. The change applies to the possibility to file VAT-26 by the 25th day of the month following the month of incurring the first expense related to the car, in connection with the moment of filing JPK for the period ended.

VAT in international trade

• regulations governing the manner of making negative corrections of import of services and Intra-Community purchase of goods – the correction should be included in the settlement for the period in which the cause of the correction occurred.
• simplification of the rules for deduction of input VAT on import of services. The proposal is that the rules in force before 01.01.2017 should be reintroduced and the requirement to settle the output VAT within 3 months as a condition for input VAT deduction in the same account period in which the output VAT is declared should be waived.
• enabling a taxpayer who accounts for tax on import of goods directly in the tax return to correct the return if the taxpayer has failed to account for the tax in its correct amount in the original return. The taxpayer can submit the corrected return within 4 months following the month in which the tax on import of goods was to be paid.

Improvements of tax on real estate sale

• if, in connection with the supply of buildings, structures or parts thereof, a notarial deed is made on the basis of separate regulations, the parties can make a statement in the deed selecting the manner of taxation with VAT of the supply of said buildings.

Improved liquidity in split payment and bad debt relief

• changes to the split payment mechanism concerning, without limitation, payments to KRUS [Social Insurance for Farmers] using the VAT account, and the possibility to transfer funds between VAT accounts maintained by different banks,
• extension of the deadline for benefitting from the bad debt relief from two to three years.

In the period from 18 February to 1 March 2021, pre-consultations are underway concerning the SLIM VAT 2 package – all parties concerned may contribute their comments and express opinions at: sekretariat.pt@mf.gov.pl.

According to the information provided by the Ministry of Finance, majority of the simplifications can take effect on 1 October 2021, and some of them on 1 January 2022.

If you wish to get additional information, please contact us.

KONTAKT

Elżbieta Lis Partner, Katowice

E: elzbieta.lis@pl.Andersen.com
T: +48 32 731 68 58
M: +48 664 948 038

Aleksandra Kalinowska Partner, Warsaw

E: aleksandra.kalinowska@pl.Andersen.com
T: +48 22 690 08 70
M: +48 724 440 693