VAT simplification
Your company has operations in Poland, VAT obligations should be simpler for you in 2021. According to the Polish authorities, the package includes solutions that simplify and modernize VAT settlement by taxpayers. SLIM VAT actually aims at removing unnecessary and redundant obligations that obstruct business operations. The new rules will become applicable as of 01.01.2021.
SLIM VAT introduces changes in four areas:
- Correction of invoices;
- Facilitation for exporters;
- Common exchange rates with income tax;
- Financial benefits.
Correction of invoices (credit notes)
It is no longer necessary to obtain a confirmation of receipt of a corrective invoice by the buyer of the goods or the service recipient.
The taxpayer will reduce the taxable basis and the VAT due already in the period of issuing the correcting invoice, provided that the documentation in his possession shows that he has agreed the terms of the transaction with the buyer of the goods or the recipient of the service. In the same period, the buyer will be required to make an appropriate correction of the input tax.
The change will significantly simplify the settlements, resulting in no need to collect confirmations of receipt of a correcting invoice and waiting for their delivery, as well as no need to correct the initial declaration.
Faciliation for exporters
With respect to the VAT exemption (0% VAT rate) on advance payment related to export of goods, the Polish regulator extends the term of export from 2 to 6 months.
Common exchange rates with income tax
The taxpayer will be able to select the same currency conversion method for VAT and income tax revenue.
For example, a VAT payer providing a B2B construction service in Poland currently uses two different rates (for VAT on the date before the invoice is issued, for CIT on the date before the service is provided). Based on the new regulation, it will be able to set one common exchange rate for the settlement of transactions in VAT and CIT.
Financial benefits
- The delay for exercising the right to deduct input VAT is extended by one month. It means that the taxpayers will be able to present purchase invoices within four months (instead of three) without having to correct previous VAT returns;
- The VAT deduction for invoices related to accommodation services for resale is now allowed;
- The limit of low value gifts is increased from PLN 10 to PLN 20.
(Source: www.gov.pl )