SLIM VAT – Steps to be taken before the end of 2020 to avoid trouble with correction invoices

The Act amending the SLIM VAT legislation has been passed is now awaiting the President’s signature and promulgation in the Journal of Laws. It comes into force on 1 January 2021. The Act sets forth, without limitation, new rules for recognizing negative correction invoices by the seller and the buyer.

Contrary to what has been said about the amendment, the new rules of recognizing negative VAT invoices do not improve the situation of taxpayers: they are imprecise and require that buyers and sellers obtain additional documents to confirm that reduction of the price or return of the goods have been agreed between the parties, and that said conditions have been complied with. Moreover, the literal wording of the regulations leads to a conclusion that the buyer is required to reduce the deducted input VAT even if he has not received the correction invoice.

The new regulations are unclear and imprecise. In particular, there are doubts as to what documentation is required in specific situations where the VAT base is reduced. Therefore, the Ministry of Finance has already announced its plan to issue a guidance document in this respect (the date remains unknown). Irrespective of said plan, taxpayers will be subject to the new tax regime in just a few days.

In our opinion the risk involved in application of the new rules for correction invoice recognition may be mitigated both for the seller and the buyer. The transitional provisions enable taxpayers to apply the hitherto rules of negative invoice recognition (i.e. based on a confirmation of correction invoice receipt by the buyer) throughout 2021. If this option is chosen, the seller and the buyer need to conclude a relevant agreement in writing, which must be signed before the first correction invoice is issued in 2021.

Therefore, if taxpayers want to eliminate the uncertainty associated with applying the new and unclear regulations governing negative invoice recognition, they must take prompt steps in cooperation with their counterparties and conclude the required agreements.

Should you have any questions or doubts regarding the issues discussed here, we are ready to assist you.


Monika Poteraj Partner, Warsaw

T: +48 22 690 08 62
M: +48 669 486 444

Elżbieta Lis Partner, Katowice

T: +48 32 731 68 58
M: +48 664 948 038

Maciej Stępień Senior Consultant, Warsaw

T: +48 22 690 08 88